Bad news this week for 200 Monaco employees of the L'Oreal subsidiary, Biotherm, in Fontivieille. Management has announced that the Sofamo factory will close on 31 March 2011. Despite a turnover of 68 million euros in 2006, the cosmetics and beauty products manufacturer has decided that the Monegasque factory is not viable. Located over 7 floors and in a town centre building, possibilities for growth are severely limited. There are environmental problems, issues of security and safety for locals, not to mention the difficulties of economic expansion. Employees are being offered the chance to relocate to Northern France, but with many of the Principality's workers having strong family roots in the region, both French and Italian, few are likely to take up the offer. Discussions between the management and workforce will no doubt take place over many of the remaining 30 months.