One of Northern Ireland’s leading commercial vehicle and construction equipment distributors has announced its intention to close down its Garvagh-based manufacturing and fabrication subsidiary with the loss of 36 jobs.

TBF Thompson Ltd, which employs 240 people across the whole of Ireland, has manufactured specialised trailers for the construction and agricultural industries at the group’s main site at Garvagh near Coleraine since 1978.

In a statement the Group said: “We regret having to take this decision. While our overall business is performing strongly, the manufacturing and fabrication operation has been making losses for more than two years in the face of falling demand in the construction and agricultural sectors both here and overseas.

“We have made strenuous efforts to turn it around but increasing costs and other factors such as the relative strength of sterling have led us reluctantly to conclude that the operation, which is not core to our overall business, can no longer be sustained.”

The company will be consulting with union representatives about the terms of employee redundancies with a view to ceasing operations by 31 March.

Commenting on the news, East Londonderry Ulster Unionist Assembly member Norman Hillis said the loss was a significant blow to the area.

“TBF Thompson has been a large employer in the Garvagh area for many years and this division had provided jobs for the past quarter of a century. It is a disappointing start to a new year when there is always a certain amount of optimism about the future," he said.

“However, this announcement is a stark reminder that the manufacturing industry here in general is still under intense strain and all public representatives are charged with the responsibility of working ceaselessly to encourage new employment opportunities into the Province."

TBF Thompson currently holds franchises for global names such as DAF and Foden Trucks and Hitachi Excavators. With headquarters in Garvagh, it has two depots at Mallusk, one at Lurgan and an outlet in Dublin.

The company is currently investing heavily in plans for a purpose-built outlet at Portadown and a major up-grade of its Dublin operation.

TBF Thompson was established in 1953 with its current owners acquiring the company through a management buy-out in October 1999.

(MB)