HEATER manufacturer Glen Electric is to make 40 workers at its Newry factory redundant as a result of increased competition and the recession.

The firm, part of the Glen Dimplex Group, said it had seen a gradual decline in the production of convector heaters and panel heaters in recent years.

It blamed the increase in imports from the Far East, which has led to key customers sourcing portable heaters in China, and the slowdown in the construction, refurbishment and retail sectors due to the economic downturn.

In a statement, the company said: "We continue to hold a strong market share in the UK and Irish panel heater markets, however these markets are currently depressed due to the reduction in new house building.

"It is also clear that we can no longer be economically competitive in the retail convector business by manufacturing in Newry and we are proposing that this product category will be transferred to our facility in China.

"Short-time working has been in place since early October but our forecasts do not show any recovery in market volumes for the foreseeable future."

Glen Electric has proposed reducing its workforce by up to 40 people to maintain the competitiveness and viability of its manufacturing plant in Newry.

It said it regretted the proposed job losses and would consult fully with those affected in order to minimise the impact.

The group was founded by its chairman Dr Martin Naughton in Newry in 1973.

The company has grown to become the largest manufacturer of domestic heating appliances in the world, with a range of more than 400 products.

It employs more than 500 people at its facilities in Newry, Portadown and its Pounds 3.5m logistics and product training facility in Craigavon, which was opened in March this year.

"To this end the group plans to invest, given appropriate Government support, in the manufacture of heat pumps, part of its renewable energy offering, at the Glen site.

"This is a clear statement of intent by the group to maintain manufacturing jobs in Newry.

"New jobs will be created in the renewables area over the coming months and years as the markets for these low carbon products develop," the statement said.

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