A total of 54 jobs are under threat at the Heathhall site

Operations director Steve Downey confirmed the announcement had been made to staff at its Heathhall site and consultation had started with unions.

He said the decision to cease industrial product manufacture "had not been taken lightly" and was to protect the future of the business.

The company employs a total of 300 people at three sites in the town.

Mr Downey said that despite action to reduce costs and stimulate demand, industrial products had remained loss-making.

"Our immediate priority is to look after our employees affected by this proposal," he said.

"The decision has not been taken lightly.

I am deeply concerned by the loss of any job, but particularly when they are high quality jobs like the ones on the line at Interfloor Russell Brown MP

"It has been made to protect the future of our business, including our Dumfries operation, and allow us to concentrate on our core products of underlay and accessories.

"We will endeavour to minimise impact on individuals through a number of mechanisms including calling for voluntary redundancies.

"We are also conscious of the potential impact on our customers and are actively working with a third party to minimise disruption to service levels."

Dumfries and Galloway Labour MP Russell Brown said he hoped the number of job losses could be reduced.

"I am deeply concerned by the loss of any job, but particularly when they are high quality jobs like the ones on the line at Interfloor," he said.

"I've met with union officials from Interfloor today - they're seeking to reduce the number of job losses and I'm fully supportive of their efforts."

Meeting sought

He urged the company to open its order book to unions to let them see if the situation was as bleak as it had been claimed.

"It appears that Interfloor have indicated that there is outside interest in this business from third parties," he said.

"If this is the case why is Interfloor so adamant that it will continue to make losses when these others think they can make a profit from the business?"