The American electronics group Solectron is to review its "loss- making" operations in Northern Ireland which is likely to lead to the closure of a factory which employs more than 200 people.

Solectron yesterday confirmed that it had entered a 90-day consultation period with trade unions to discuss the future of its factory in Carrickfergus in County Antrim, which manufactures telephone equipment.

The Californian-based electronics group is one of Nortel's major suppliers in the North and has seen its fortunes dip sharply in line with the Canadian group's continuing problems caused by the downturn in the global telecoms sector.

Nortel Networks manufactures telecommunications transmission equipment including fibre optic equipment in the North. At one stage it employed 2,400 people but its current workforce stands at just 1,100.

Solectron took over the Carrickfergus site from the Canadian telecoms giant less than 12 months ago as part of a group-wide Nortel restructuring initiative.

Mr Bill Nixon, the general manager of Solectron in Northern Ireland said yesterday that the division had gone through a difficult period over the last 12 months.

"We had hoped that we would see some upturn, but as we look through this calendar year, it looks like it will continue to be suppressed and stay flat," Mr Nixon added.

Mr Nixon refused to comment on how many jobs were under threat at the County Antrim site but union sources say that out of the 230 strong workforce, up to 200 jobs are vulnerable. It is also understood that 30 jobs will be shed at one of Solectron's other divisions in the North.

While workers at Solectron came to terms with the prospect of redundancy, a Derry company yesterday unveiled a £2.4 million sterling (€3 million) investment in its future. Glenaden Shirts plans to develop its design business and focus on a new range of shirts for international retailers such as Thomas Pink. The investment is expected to create 40 extra jobs at its Derry site, which already employs 150.