NEW YORK — Concord Fabrics said it has entered into an agreement to sell the machinery and equipment at its Chino, Calif., dyeing and finishing plant to Pennsylvania Textile Corp. (Penn-Tex), West Hazleton, Pa., for $2 million. The transaction is expected to close in February.

In addition, Concord said it is leasing the 100,000-square-foot plant for a five-year period to Penn-Tex at an annual net rental of $297,000. Penn-Tex was also granted an option to purchase the building and the five acres of land on which it sits for $2.9 million during the lease period.

Earl Kramer, Concord’s president, said the firm had been looking to discontinue operations at Chino since September 1992, citing “underutilization and depressed margins.”

He added that the move will allow Concord to consolidate dyeing and finishing operations, limiting them to its Washington and Milledgeville, Ga., plants.

The Chino facility contributed less than 10 percent of Concord’s 1992 sales of $197.1 million.