Adria, the hosiery and lingerie manufacturer, which four years ago promised to create 500 jobs in Newry, yesterday closed its Co Down factory with the loss of 165 jobs.

The textile company is the third company in as many weeks to axe jobs in the North.

Magee Clothing in Ballymena and Penn Nyla in Craigavon have also announced plans to shed more than 200 jobs in the coming months.

Adria received £8.7 million sterling (#14.1 million) from the North's Industrial Development Board (IDB) in 1997 towards the cost of a £33-million sterling investment programme for its Northern Ireland operation, which included the 85,000-sq foot factory in Newry.

The IDB said the company's liability regarding yesterday's closure of the plant would be determined by "its future commitment to its Northern Ireland business".

An Adria spokeswoman said that market conditions had been the key driver behind its decision to close the factory in Newry. The company spokeswoman said a downturn in prices and margins and the impact of currency pressures had resulted in the factory becoming economically unviable.

Adria continues to employ some 1,500 people in Northern Ireland, primarily at its factory in Strabane. The company has said this division has a strong order book.