A RADCLIFFE textile factory is set to shut in June with the loss of 105 jobs.

And the closure of Unifi Dyed Yarns will be another nail in the coffin for the town's dwindling manufacturing industry.

The company, whose headquarters are in the USA, blame the move on the deteriorating economic climate surrounding textiles.

Meanwhile, union representatives at the York Street plant are battling for an enhanced redundancy package to mirror that offered to Unifi staff in Ireland who lost their jobs.

The Radcliffe factory, formerly Intex Yarns, manufactures custom dyed synthetic yarns for many products, including FA football kits. Its custom dyed synthetic yarns are also used for car seat covers by such firms as Ford, BMW and Mercedes and a range of hosiery products.

Staff at Unifi are represented by two main unions, the TGWU and Amicus, who have been have been involved in talks with management.

Mrs Kath Rutherford, full-time TGWU official, said: "We held talks on Monday to try to engineer a reasonable redundancy package. The same company made a lot of redundancies in Ireland where they paid staff a lot more.

"A large majority of the workforce here are textile operatives and the chance of getting another job in the area is quite poor. We made this point to the company in trying to get them to improve their redundancy package and they said they'd reconsider."

She added: "On Monday, they came back with an offer which is slightly above the statutory requirements but nowhere near in line with what happened in Ireland. We have expressed our concern."

The unions also wanted Unifi to retain between 20 to 30 staff at a smaller site in Radcliffe to help fulfil orders. But bosses have rejected this. Commenting on the closure announcement, Mrs Rutherford went on: "We are not too surprised at what has happened.

"The workforce has declined from 400 at the end of the 1980s to around 105 now.

"We did believe that when Unifi took over four years ago that they would turn the company around. But it seems they have lost customers and overall there isn't as much business as before."

It is also understood that car manufacturers which previously used Unifi's products for seats have switched to another type of yarn. Mr Martin Horrobin, Unifi Dyed Yarns general manager at Radcliffe, said: "At the moment we are going through a 90-day consultation period. And there is the likelihood of the factory closing."

He blamed the current situation on general economic trends within the textile industry. "More and more of our customers are going into off-shore production," he added. Commenting on the closure plans, Mr Horrobin went on: "It is sad in a way. It is not an easy decision to make but it reflects the current economic climate in textiles."

He declined to comment on the negotiations over the redundancy terms.

In December, the factory celebrated a double achievement when it was awarded a new, top quality British standard and a coveted registration issued by the Environment Agency.

American-owned Unifi purchased Intex Yarns, Radcliffe, in March 2000. The textiles giant employ thousands of staff worldwide in its global textile operations.

The Radcliffe business originally traded as Qualitex before it was taken over by ICI in 1972. Intex Yarns was subsequently set up. In 1992, Intex announced 114 job losses as it prepared to axe its hosiery operations.

It clinched a deal to sell its hosiery texturising machinery, to US-based Unifi.

Intex said the sale would enable the company to make a "substantial investment" in its core dyed business.