Interface Europe, a carpet tile manufacturer, is expected to shed a total of 95 jobs at its factory in Lurgan following a downturn in the market.
The company said that, since July, it had experienced a sharp downturn in orders and, as a result, was planning to restructure and sell some of its UK operations.
It has now begun a 30-day consultation process with employees at its Co Armagh plant, with the intention of making 45 people redundant. Interface Europe also plans to relocate one of its production processes to other sites in England and the Netherlands, which is likely to cost a further 50 jobs in Lurgan over the next six months.
A spokesman for the company said it regretted the restructuring and that it would continue to employ 70 people in the production of tufted carpeting in Northern Ireland.
The company representative said: "We must recognise the impact of this recession on our market-place and on our business. We have had to cut costs and capacity across the group at all levels, in the United States, throughout continental Europe and the UK in order to position our business to match current and anticipated demand."
The group has put its Broadloom operation in Yorkshire up for sale and is consolidating its operation at Shelf.
Once the restructuring programme is completed, its employment numbers are expected to fall to around 500. Three years ago it employed 1,200 people.
Meanwhile, the Northern Ireland Assembly has announced a £21 million sterling (€34 million)package of European funding for employment and training projects. Dr Sean Farren, Minister for Employment and Learning in the North, yesterday unveiled the package which will fund employment and training projects across Northern Ireland. The package will support projects targeted at helping to tackle unemployment in Northern Ireland and disadvantaged groups.
One Co Derry construction company is also planning to expand its business and recruit a further 26 people with the help of £250,000 of financial support from the Industrial Development Board.
