Clothing firm Magee is cutting 60 jobs at its factory in Donegal Town by June next year as it ends production in the town.

The company blames the high cost of manufacturing in Ireland and says it will continue to base its administration, design and marketing in Donegal Town, where it has operated since 1866.

The decision will not affect the Magee weaving operation, which employs 60 people at the factory, or the Magee shops.

Chairman Lynn Temple said he deeply regretted the redundancies but added that Magee did not have a single major competitor which was still producing garments on a large scale in Ireland or the UK.

Magee will continue to employ around 130 people in Donegal Town after the redundancies, including 30 people in its local retail outlet.