Desmond and Sons which makes women's leisure clothes announced the decision to close its Dungannon factory on Monday.

The company said it regretted having to take the decision, but it was no longer possible to sustain the viability of the manufacturing unit.

We are taking this step with great reluctance and wish to emphasise that the decision does not reflect in any way on the excellent efforts of our employees

Desmonds and Sons statement

The factory has employed people in the town for 12 years.

A statement by the company blamed price pressures and recruitment problems for the closure.

It said: "We are taking this step with great reluctance and wish to emphasise that the decision does not reflect in any way on the excellent efforts of our employees."

It employs 2,250 people at eight factories and two warehouses in Northern Ireland, and a further 2,750 in the Middle East and Far East.

Fermanagh and south Tyrone MP Michelle Gildernew of Sinn Fein said people were shocked at news of the closure.

"The textiles industry in my constituency has suffered a number of blows over the past couple of years," she said.

SDLP assembly member Tommy Gallagher said the job losses were a tragedy for the people losing their jobs and "very discouraging news" for the area.

"This is another area west of the Bann suffering because of already well-documented problems in the textile industry," he said.

Capacity

Mr Gallagher, who represents Fermanagh and South Tyrone, said he would be taking the matter up with the employment minister at the first opportunity.

Ulster Unionist assembly member Sam Foster said he was concerned about the decision.

"It is strange that some of the difficulties are retaining and recruiting workers in the Dungannonn area so that the factory is only working at half the capacity it was built for," he said.

"I would say that my constituency has lost enough jobs and we don't want to lose any more if it is at all possible.

"I have been making attempts to contact officials from the factory itself and I trust that we can come to some arrangement whereby it does not close".