EFFORTS are continuing to save nearly 400 jobs at the Coats Viyella shirt factory at Maydown, outside Derry, which the company says will have to close because its products can be made more cheaply overseas.

In an effort to save some of the jobs, it is being proposed that Coats Viyella move part of its home furnishings division to the Maydown factory. The division's chief executive, Mr Keith Foley, said that the manufacture of pillow cases, curtains and duvet covers could provide work for up to 140 people.

The announcement reflects the continuing battle by Northern Ireland's clothing and textile companies, which employ around 26,000 people - or a quarter of the manufacturing workforce - to remain competitive in an industry which has proved particularly vulnerable to low cost operations overseas, particularly in the Far East.

The biggest company in this sector is Desmonds, which has 10 manufacturing sites in Northern Ireland, employing around 3,000 people in the production of leisurewear, outerwear (mainly jeans) and nightwear, exclusively for Marks & Spencer.

According to its chairman Mr Denis Desmond, 15 per cent of its output is made overseas, a reduction on the 20 per cent of five years ago.