The announcement by Lamont Textiles that it is giving 90 days' notice of redundancy to 265 employees at its carpets and yarns divisions is the latest blow to the textiles industry in the North. Lamont, under managing director Mr Dick Milliken, said it was seeking buyers for these businesses, which are based in Ballygowan, Newtownards and Killinchy, because they have been adversely affected by increased over-capacity in Europe and the continuing strength of sterling.
The company said it was in discussions with potential purchasers and, while it was hopeful of disposing of the businesses, the future of the factories involved was not yet clear. As a result, it announced yesterday that it was giving the redundancy notice.
The announcement follows the Lamont board's decision, revealed late last year when the company announced interim losses of £6.96 million sterling, to concentrate its activities on dyeing, finishing, printing and weaving. Meanwhile, the Savile Row shirt company has also announced that it may have to lay off up to 80 of its 147 employees at its plant in Coleraine. A spokesman said that the jobs were at risk because of poor Christmas sales and a declining market for fashion shirts. However, he said that 150 jobs at the company's factory in Castledawson would not be affected. The news from Lamont and Savile is just the latest in a string of announcements which have hit the Northern Ireland clothing and textiles sector. It comes only days after jeans manufacturer Hawkesbay announced that it was closing its factory in Ardee, Co Louth, and was making 160 workers redundant at plants in Derry and Newtownards.
The company said that one of its main customers, the VF Corporation, which makes Lee and Wrangler jeans, and from which it bought the factories in 1998, would not be renewing its current contract, due to expire at the end of this month.
However, a spokesman said that attempts were being made to negotiate new contracts with retailers and other branded companies in Europe and North America, which could help to secure the future of the two Northern plants. Hundreds more jobs remain under threat elsewhere in the industry. In October, the high street retailer Marks & Spencer announced that it was ending its supply contract with the William Baird clothing company, which has factories in Bangor and Newtownards. Meetings have been held between M&S management and officials of the GMB union in an effort to save at least some of the jobs.
Bairds, which sold £170 million worth of goods to M&S last year, representing 38 per cent of its turnover, has already said it will close seven of its 15 UK plants, which employ 4,500 people. It employs another 3,000 at factories in Sri Lanka. Northern Ireland's biggest clothing company, Desmond's, an exclusive supplier to M&S for the past 40 years, has also been affected. Less than three months ago, it was forced to close its factory in Magherafelt, with the loss of 90 jobs. It also laid off 40 workers at its factories in Derry and Dungiven. The problems at M&S were also blamed for the loss of 225 jobs in November 1998, spread across Desmond's 3,400 staff at its 12 factories in Derry, Tyrone and Fermanagh. The GMB has published a report showing that, in spite of its difficulties, M&S is still one of the world's top 10 most profitable retail companies.
"The pie-in-the-sky profits being sought by the fat cats at Marks & Spencer could cause the destruction of the UK clothing industry," said Mr Des Farrell, the GMB's national officer for the clothing industry. "We have to do what we can to stop them."
