Hennessy is studying a plan to bottle cognac in China, the company owned by French luxury giant LVMH said on Tuesday, prompting hundreds of workers at its plant in southwestern France to go on strike.

Hennessy, owned by the French luxury giant Louis Vuitton Moët Hennessy, is exploring the move after China recently imposed steep financial penalties on European brandy imports, according to the Confédération Générale du Travail and Force Ouvrière unions, which represent Hennessy employees.

Workers at distilleries Maisons Hennessey, Remy Martin, Courvoisier and Martell plan to go on strike next week over fears that the industry could relocate its bottling business to China in a bid to circumvent import tariffs.

By Dominique Patton and Elizabeth Pineau PARIS/RIO DE JANEIRO (Reuters) - Hennessy staff extended a strike on Wednesday over its plans to bottle cognac in China to circumvent import tariffs, after French President Emmanuel Macron urged his Chinese counterpart Xi Jinping to lift the duties.