Textiles industry has been badly hit by job losses this year

Fears are growing that more than 40 jobs could go at a textiles factory in County Londonderry.

Courtaulds is considering moving part of its operations to Morocco.

The lingerie manufacturer held talks with employees and union representatives in Limavady on Wednesday to try to find an alternative to redundancies.

Local SDLP councillor Dessie Lowry said it was feared more than 200 redundancies could be announced in June.

"We anticipate that the only jobs that may be kept could be research and development jobs.

"This is a severe blow to the whole north-west economy.

"It is something we would like to avoid at all costs, but there is an inevitability given the very severe downturn in the textiles industry."

Courtaulds agreed to a takeover offer from US food and consumer products group Sara Lee in March 2000.

This is a severe blow to the whole north-west economy Dessie Lowry SDLP councillor

The company owned the Gossard and Berlei bra brands before the takeover.

About 155,000 people are employed by Sara Lee in 55 countries.

Talks

Meanwhile, management at clothing company Desmonds have been meeting union leaders to discuss redundancy packages for hundreds of workers.

The talks on Wednesday follow the announcement that the textiles company is to make 500 people redundant.

Desmond & Sons is to shut down plants at Omagh in County Tyrone, Swatragh in County Derry and Irvinestown in County Fermanagh.

The losses come just four months after the firm announced that more than 300 jobs were to go at two plants.

Employment in the province's textiles industry has been badly hit since the start of the year, with firms struggling to ward off the threat of cheaper foreign imports.

Last month, Herdman's linen-spinning mill in Sion Mills told more than 160 employees they were to be made redundant.

All 180 employees at CV Furnishing were laid off with the closure of its factory at Maydown, near Derry in March.

Saville Row shirt makers in Castledawson laid off 65 of its workforce in February.