30/01/2003
Over 300 jobs go at Derry clothing company
A leading Londonderry clothing firm has announced that 315 of its employees are to lose their jobs.
After a detailed review of their operations, Desmonds & Sons Limited – which employs almost 2,000 people in the province – announced that clothes would no longer be made at its Springtown plant in Derry, with 170 factory workers and support staff losing their jobs.
Elsewhere, its Dungiven factory will close with the loss of 133 operative and support staff jobs. A small number of jobs will also be lost at its factories in Irvinestown and at Newbuildings. However, 17 people will be kept in Springtown as the firm is to maintain a cutting operation at the plant.
East Londonderry MLA David McClarty said the news was “another shattering blow” for the manufacturing industry.
“It is becoming more and more difficult for locally based companies to compete in such an aggressive market when labour costs in other countries are considerably lower than they are in Northern Ireland," he said.
“Unless a serious move is made to re-assess the industry we will continue to see it slip away.”
The privately owned company – which has supplied childrenswear and adult clothing to Marks & Spencer for 60 years – said in a statement that production at the two factories was no longer viable because of continuing pressures on profit margins.
It said it had "no alternative other than to restructure the business in order to match production capacity to market conditions".
Last September the company closed a factory in Dungannon, Co Tyrone, with the loss of 106 jobs.
Desmonds will retain factories in Londonderry, Swatragh, Irvinestown and Omagh, employing around 1,500 people.
(AMcE)
After a detailed review of their operations, Desmonds & Sons Limited – which employs almost 2,000 people in the province – announced that clothes would no longer be made at its Springtown plant in Derry, with 170 factory workers and support staff losing their jobs.
Elsewhere, its Dungiven factory will close with the loss of 133 operative and support staff jobs. A small number of jobs will also be lost at its factories in Irvinestown and at Newbuildings. However, 17 people will be kept in Springtown as the firm is to maintain a cutting operation at the plant.
East Londonderry MLA David McClarty said the news was “another shattering blow” for the manufacturing industry.
“It is becoming more and more difficult for locally based companies to compete in such an aggressive market when labour costs in other countries are considerably lower than they are in Northern Ireland," he said.
“Unless a serious move is made to re-assess the industry we will continue to see it slip away.”
The privately owned company – which has supplied childrenswear and adult clothing to Marks & Spencer for 60 years – said in a statement that production at the two factories was no longer viable because of continuing pressures on profit margins.
It said it had "no alternative other than to restructure the business in order to match production capacity to market conditions".
Last September the company closed a factory in Dungannon, Co Tyrone, with the loss of 106 jobs.
Desmonds will retain factories in Londonderry, Swatragh, Irvinestown and Omagh, employing around 1,500 people.
(AMcE)
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