Talks have taken place between trade union officials and management at a County Tyrone factory which is to close with the loss of 106 jobs.

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

The company said it had been operating at only half its capacity and had become unviable.

'Tragedy'

It added none of its other plants would be affected.

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

Following Tuesday's talks, Allan Elliott of the GMB union said progress was made on a number of issues, including redundancy terms.

He added: "Alternatives to closure were suggested but it appears closure is inevitable."

He said unions would again meet management on Thursday to discuss details of a redundancy package and get more details on the closure of the factory.

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 and Far East.

Local politicians said the community was shocked at news of the closure which was "a tragedy for those people losing their jobs".