ADM Londis is to close its warehouse and distribution business in Co Kildare with the loss of 62 jobs.

The company said yesterday that it was doing so because its costs were higher than those of its competitors.

The Johnstown plant distributes goods to the 158 Londis stores in the Republic and also supplies a number of off-licences. Employees were informed of the warehouse business's pending closure last Friday.

Mr Michael Coady, a SIPTU shop steward at the warehouse, accused the company of not being interested in negotiating. He said talks on wage structures had begun only four weeks ago, although talks on "local issues" had started in April.

Mr Coady said the union had put forward up to three options, but these had been rejected by the Londis board. He maintained that, since 1992, output at the warehouse had doubled and flexibility had also risen.

ADM Londis general manager Mr Eddie O'Callaghan said last night that the work would be done by Allied Warehouse & Transport , based on the Belgard Road in Dublin.

He said the company wanted to develop a more flexible operation. This included earlier start times and what is known as a work to finish, to accommodate busy and slack demand periods.

The two sides are due to attend a Labour Court conciliation meeting on redundancy payments on Monday.

ADM Londis is a co-operative which is owned by the Londis shop-owners. It ran the warehouse and distribution business which Mr O'Callaghan said had cost Londis substantial monies.