Up to 106 people are to lose their jobs at a factory that produces women's wear for high street giant Marks & Spencer.

Desmond and Sons said it regretted its decision to axe its plant in Dungannon, County Tyrone, but pressure on retail prices and a lack of skilled staff had left it with no other option.

The company, which is a joint venture partner with M&S' Zip Project, employs up to 2,000 people at seven factories in Northern Ireland, said its other plants won't be affected by the announcement.

The company said the situation "has been made worse by severe difficulties in retaining and recruiting workers in Dungannon, with the result that the factory has not been able to achieve the economies of scale necessary to remain competitive".

It added: "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.

"The Dungannon factory has recently been operating at only half the capacity it was built for in 1990."