500 to lose jobs in Lurgan firm

Angry scenes erupted at a Co Armagh factory yesterday following an announcement that 500 staff would lose their jobs

Angry scenes erupted at a Co Armagh factory yesterday following an announcement that 500 staff would lose their jobs. Saracen, part of the Coats Viyella firm in Lurgan, is to close, with the staff given 90 days' notice, writes Carmel Robinson.

The factory, which supplies nightwear and children's clothing to Marks & Spencer, is believed to be shutting down because of the strong position of sterling and reduced demand for domestically-produced goods.

It is understood the Industrial Development Board in the North and the factory's management tried to devise a rescue package, which was allegedly rejected by Viyella.

Mr John Edmonds, general secretary of the GMB union, described the decision to close the factory as "a scandalous disgrace".

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Workers stood and hissed at the Coats Viyella spokesman who gave them the news, with many shouting "Merry Christmas and a Happy New Year".

A statement from Coats Viyella said the relative strength of sterling had reduced demand for domestically-produced goods.

It said that production would be transferred to another part of the group, thought to be England or Morocco.

The local MP and UUP leader, Mr David Trimble, said he hoped that someone would take over the factory.

He criticised the Coats Viyella management in England, adding that he was shocked that such a big blow should hit the local economy.