NI's largest textile company to cut jobs

Substantial job losses at Northern Ireland’s largest textile company were anticipated tonight after the company revealed a “dramatic” drop in business.

Up to 200 jobs are feared to be on the line immediately and many more in the coming months at hosiery company Adria, based in Strabane, Co Tyrone.

It is the latest in a long line of blows to the textile industry in the North which has been hard hit by cheap competition from the Far East.

The company is the largest supplier of hosiery products to troubled High Street store Marks & Spencer whose business down turn has already substantially hit employment in other Ulster textile companies.

An announcement to the 790 workforce is expected to be made within days.

Adria said in a statement tonight that following particularly harsh global trading conditions in the first financial quarter of this year it had “experienced a dramatic reduction in turnover, down 25% on 2004 figures".

It added: “Unfortunately this will have a major impact on the profitability of the company across the full financial year’s trading.

“This has resulted in the management initiating an urgent review of its business to enable it to return the company to profit.”

The major review had commenced and it was “anticipated that job losses would be a regrettable but necessary part of the process”, said the company.

Despite the current market condition, Adria said it remained confident in its position that it had a long-term future in Strabane and would continue to be a “significant employer” in the area.

It said as previously stated the company believed 2005 was “largely about ensuring survival” within the global marketplace, with the prospect of a much more prosperous 2006 and beyond.

The company said it was working towards a sustainable future where Adria would become a “centre of excellence “ for its hosiery business worldwide.

It said it expected its reorganisation to be completed by the fourth quarter of the year.

There are considerable concerns in Northern Ireland that will mean the ending of production in the province.

Adria manufactures ladies, men’s and children’s hosiery products in Northern Ireland as well as in Turkey, Italy and Colombia.

It is the largest hosiery supplier to Marks & Spencer in the UK and the Victoria’s Secret brand in North America.

The company shed 165 jobs in 2001, was taken over by a local consortium in June 2002, but continued to cut employment – 55 in September 2003 and another 58 last July.