Textile company Fruit of the Loom has announced plans to gradually close down its Derry and Donegal factories, as part of its European restructuring.

The decision to shut the spinning, knitting, and dyeing facilities could mean the loss of up to 300 jobs.

Most of the operations now carried out at Campsie, County Derry, and Buncrana, County Donegal, will be moved to Morocco, where Fruit of the Loom already has 1,700 employees.

Fruit of the Loom began its Irish operations in 1987, employing a total of 3,500 people when it was in its prime.

The factories are said to be no longer cost effective following a general downturn in Northern Ireland's fortune in the textile industry in recent years, caused by highly competitive low wage economies elsewhere.