GMH union regional organiser, Mr Alan Elliott, who represents most of the 315 employees, said he had been devastated by the news.
The North's depressed textiles sector received a new blow yesterday as Desmond & Sons confirmed that it would lay off 315 of its workforce in Derry.
Desmond, the North's largest international clothing manufacturer, is to close its factory in Dungiven, Co Derry, with the loss of 133 jobs, and 182 jobs are to go when a plant at Springtown ceases production.
The company, which has a turnover in excess of £130 million sterling (€199 million) will see its Irish workforce shrink to 1,500 as it transfers the bulk of its manufacturing process to plants in the Middle and Far East, which employ more than 5,000 people.
A company spokesman said the redundancies were a result of continued pressures on margins, which meant production at the two Derry factories was no longer viable. "The consumers' desire for enhanced products at keener prices increasingly dictates that garments have to be made abroad and this price factor has led to a situation where both the Springtown and Dungiven factories have been sustaining operating losses," the spokesman said.
Employees leaving the Springtown plant yesterday afternoon said they were stunned by the magnitude of the job losses.
"I was expecting something in the region of 200 and that was bad enough, but 315 is beyond our worst fears. My priority now is to secure as good a redundancy package for my members," he said.
The Mayor of Derry, Councillor Kathleen McCloskey, yesterday visited the Springtown factory to sympathise with staff.
The Desmond closure comes as fellow textiles group Lamont Holdings prepares to enter administration in an attempt to survive a new financial crisis.
The company, which exited operations in the North two years ago, has been forced into the move by a shortfall in working capital.
In a stock exchange statement, directors blamed delays with an asset disposal and problems with securing money due from a previous asset sale for the funding difficulty.
Deloitte & Touche has been appointed as administrator to Lamont, which is now based in Scotland. Directors expressed a belief that the company has a viable future, "subject to agreement with its funders".
Lamont's balance sheet continues to be weighed down by about £12 million in bank debt, while about 9 per cent of the company's shares are held by its bankers.
The textiles producer delisted from the Dublin and London stock exchanges as part of a £28 million restructuring instigated last year. Its shares now trade on Britain's Alternative Investment Market
Lamont's largest remaining shareholder is venture capitalist Mr Pierce Casey, who holds a personal stake of 6.1 per cent and shares a further 4.5 per cent with a number of others.
