DIFFICULT trading in the textile sector has resulted in a 21 per cent fall in pre tax profits at the Belfast engineering group, Mackie International.

Mackie's profits for the first six months of the year were £1.04 million sterling, compared to £1.32 million during the same period last year. Turnover fell almost 13 per cent to £9.5 million.

Mackie's executive chairman, Mr Pat Dougan, said in a statement that the trading climate was likely to remain difficult for the rest of the year.

Mackie had earlier warned the market that its profits would be hit by a major Chinese order worth "several million pounds" which had been delayed. The delay was caused by the Bank of China which had stopped the contract going ahead.

The financial director, Mr Shaun Harte, said it was hoped the Chinese order could be reactivated, but it would be "tricky" for him to say exactly when. "The order isn't dead... but I'm not sure how alive it is."

He said work had started on the new foundry in Belfast, which should be completed by next March.

One particular order, worth £1 million annually, has already been won for the new foundry, and patterns are currently being constructed. "It's going very nicely," Mr Harte said.

Mackie said its joint venture with Mesh mater to produce processing machinery to make steel reinforcing mesh was in place, and initial orders bad been taken. But the main priority for the joint venture, according to Mr Harte, was to win a contract to secure the installation of the equipment in either Britain or Ireland.

The Indian joint venture with Himson Textile Engineering has now established its manufacturing base, which Mackie says will help capitalise previous expenditure in the development of new technology for the jute industry. The company hopes that the signs of improved trading in the jute industry may encourage reinvestment plans.