Bathroom maker Qualceram Shires will cut 220 jobs at its ceramic manufacturing plant in Stoke- on-Trent to cut costs and help keep the company competitive. Claire Shoesmith reports.

While demand for its basins, toilets and shower screens remains strong in Ireland, the weakening housing market in Britain and increased competition from overseas suppliers is making business in the UK more challenging, Aidan Clince, Qualceram's secretary, said.

The company, which employs about 750 people, has no plans to cut any jobs in Ireland, he said.

"Any redundancies from this essential restructuring are very regrettable," said chief executive John O'Loughlin. "However, it is vital that the group is well positioned to respond to fast changing market conditions and increasing international competition."

The restructuring, which should be complete by the end of the summer, will save the company about €2.5 million a year, though the benefits won't be seen until next year, according to Mr Clince.

One-off restructuring costs of about €6 million will be incurred. Negotiations are under way to keep the plant, which is the company's only one in the UK, operating as a distribution centre and showroom, he said.

In March, Qualceram reported a 60 per cent increase in profit to €5.7 million, boosted by the sale of a property in Hanley. Turnover rose by 3.6 per cent to €98.2million.

The company, founded in 1988, has just over half of the bathroom market in Ireland and about 10 per cent in the UK. It has six brands including Qualceram, Shires and Shaws of Darwin.