Staff at Waterford Stanley were told yesterday that the company plans to close part of its production process at the cost of 75 permanent and 26 part-time jobs.

The company, which employs 303 people full-time in Co Waterford and a further 100 in a subsidiary in Co Wexford, intends to source abroad components which it currently manufactures itself.

"The action was taken to sustain competitiveness in the marketplace," said Mr Gerry Currid, joint managing director. Talks with trade union representatives will begin today and the company hopes the 75 job losses can be achieved voluntarily by the end of the year. The part-time contract workers are being given six months' notice.

Waterford Stanley currently produces metal castings which are then enamelled and assembled into quality heating and cooking systems.

"The production of castings internationally has increasingly moved to lower labour cost countries, especially Eastern Europe and the Far East."

"At present, due to labour costs, it is more costly to produce castings in Waterford, which is eroding competitiveness," Mr Currid said.