Deoleo, the Spain-based olive oil supplier, is selling a plant in Spain and plans to close another in Italy.

The company is offloading a site in Antequera in southern Spain to local rival Dcoop. It is also submitted plans to local government officials to shut a plant in Inveruno in the suburbs of the Italian city of Milan.

“Deoleo has to adapt its industrial capacity to the business needs so as to improve its positioning in the market,” a spokesperson said. “The group was only using up to 36% of its production capacity, that’s why a restructuring was needed.

Other changes to Deoleo’s production network will include investment at a site in Alcolea in Spain and at another facility in the Italian town of Tavarnelle, close to Florence.

The closure of the plant in Inveruno will affect 98 workers. Deoleo has started talks with staff representatives.

Dcoop is to pay EUR7m (US$7.7m) for the Deoleo site in Antequera.