The British textiles group Coats Viyella has begun the phased close down of its Lisnakea plant,which will result in the loss of 140 jobs.
It is the latest in a series of redundancies by the 200-year old group, which employed more than 2,000 workers in the North just five years ago, but now employs around 400 people.
Coats Viyella blames competition from low-cost, offshore operators in the Far East for the loss of employment.
According to Ms Linda McHugh, director of the Northern Ireland Textile Association, many companies in the North are being forced to "reposition" themselves because of the competitive pressures. Union leaders said workers in Lisnaskea were upset that the company had decided to axe the entire factory.
It is the second blow for Fermanagh in six months: Cooneen Textiles also plans to close its factory in Enniskillen, which will result in the loss of 90 jobs.
Thousands of jobs have been lost in the North's textile sector in the last five years and analysts expect a further 13,500 jobs to go over the next five years. Coats Viyella closed its Saracen factory in Lurgan, with the loss of 500 jobs, in 1997. Last year it cut 250 jobs at one of its Derry shirt and tie factories. Also this year Adria has closed a number of operations in the North, while Magee Clothing plans to axe 113 jobs in Ballymena and Penn Nyla has identified 139 redundancies at its plant in Craigavon.
