A total of 50 people are to lose their jobs in Sligo at a Japanese-owned plant producing video tape. Saehan Media Ireland said yesterday it was letting go 11 permanent and 39 temporary staff in a bid to cut costs.

Saehan has been in Sligo since 1991 and employs a total of 304 people, making it one of the largest employers in the town.

Human resources manager, Mr Gary Byrne, said the company was still continuing to make capital investments in buildings and process equipment.

"Saehan envisages a long-term future in Sligo," he said. The company had been forced to look at its cost base because utilities costs such as electricity had increased by 18 per cent this year.

Mr Byrne said there had been a slight cut-back in production. The staff will be let go from the end of March to April.

The 11 permanent staff are in services areas such as cleaning and security, and the 39 temporary staff who are losing their jobs are mainly operatives.