One of Ireland's longest established linen-spinning mills is to make 158 of its total workforce of 425 redundant. Herdmans Limited, which has operated in Sion Mills, Co Tyrone, since 1835, said it could no longer sustain the financial losses it had incurred over the last three years.

Yesterday's announcement brings to almost 800 the number of jobs lost in the textiles manufacturing industry in the Derry-Tyrone area since the beginning of this year.

A spokesperson for Herdmans Limited said that the linen sector, like other sectors in the western European textile and clothing industry, was constantly facing competition from low-cost countries in the east.

"China, which buys most of the European flax crop, has become the largest producer of linen yarn, linen fabric and linen garments in the world. This demand has led to very high raw material prices that show no sign of reducing. In addition to these problems, increased insurance, energy and social costs have also contributed to this announcement," the spokesperson said.

"Herdmans, in common with its western European competitors, has adopted a balanced offshore manufacturing strategy and has recently opened a mill in South Africa."

"The existence of the South African operation will help to maintain the employment of the remaining 267 people at the factory in Sion Mills, where the sales, distribution and administration of all operations will continue to be based," the spokesperson added.

No-one from the company's management would elaborate on the statement, but Mr James Quinn, regional industrial organiser with the Transport and General Workers' Union, which represents most of the Herdmans' staff, said the announcement had come as a complete shock.

"Just before Christmas we entered into a period of consultation with the management. At that time we were talking about the possibility, only the possibility, of about 80 jobs going."

"The only thing that changed in the intervening period was that 20 people left the company, so we all thought the job losses would reduce to about 60."

"I was called to a meeting with one of the company's directors this afternoon while the managing director, James Herdman, was at the same time talking to the workforce. My mouth dropped when I was told that 158 jobs are to go. I was in total shock. It was totally and absolutely unexpected," he said