The company's carpets are famous worldwide

Ulster Carpet Mills said the job losses were regrettable but essential because of significant investment in new technology.

The Portadown firm is seeking an initial reduction of 30 people through voluntary redundancy.

It is understood the remaining jobs will go over the next two years.

Ulster Carpets group chief executive Mike Mills said the job losses would enable the company to improve productivity which was "vital given the high wage economy we now have in the UK".

"Over the past few years our company has been pursuing a strategy to turn the Portadown manufacturing base into the most flexible and effective carpet weaver in the industry," he said.

"Our new technology provides us with confidence that there will be a long term future for manufacturing in Portadown."

He said the move was not as a result of a "calamity in the marketplace".

Mike Mills said job losses would enable firm to improve productivity

"Far from it - this is happening because we have invested over the years in leading edge technology, particularly in the weaving end of our business.

"We are now going on a programme to deploy that equipment in such a way that over the course of the next two years it will take us to the point that we are without dispute the world's most technically advanced carpet weaver."

Earlier this year, the County Armagh firm came 12th overall in the whole of the UK in the Sunday Times' 50 Best Companies to Work For survey.

The company employs 1,500 people worldwide with production facilities in South Africa, Australia, Denmark, and England.

Meanwhile, workers at Belfast plane maker Shorts have voted to reject a pay deal covering the next four years.

The proposal, which had been agreed by management and the unions, would have resulted in a pay freeze next year.

The company said the result of the ballot was disappointing and concerning in view of the current "difficult commercial situation".

The firm said it would be reviewing its position in the light of the result.