An MLA has warned over the future use of a recession-hit engineering company's site.

She was commenting after news that Londonderry engineering company, Arntz Belting, is expected to close with the loss of over 100 jobs.

Foyle Sinn Féin MLA Martina Anderson said yesterday: "My thoughts are with the workforce at Arntz who will be devastated at the possible closure of the plant," Ms. Anderson said.

"While we must do all in our power to retain these jobs if possible, we must not lose sight of the need to ensure that this site is not disposed of as part of the company's plans to pull out of Derry.

"It must be retained for employment generating purposes as I am aware that planning permission for residential and commercial use of the site has already been applied for and refused.

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"Clearly, given Arntz's close proximity to Fort George and the Kelvin Telehouse location this site could become crucial for potential telecommunication clients who wish to locate close to the Telehouse."

Yesterday, Ulster Unionist Foyle councillor, Alderman Mary Hamilton, expressed sadness at news that the engineering company is expected to close.

"To see a company with a 40 year history falling prey to the economic crisis is terribly sad and deeply worrying," she said yesterday.

"I have no doubt that management have long been fighting the company's corner, but that the pressures they faced were just too great. For those staff facing 90 days' notice of redundancy, I can only offer my heartfelt sympathies.

"These are trying times, but I am glad that Arntz Belting has pledged to meet its commitments to employees.

"This is a further blow that Londonderry could well have done without. However, I would urge those suffering the consequences of this decision to seek out the appropriate support, as regards new employment or indeed re-training," she concluded.

(BMcC/GK)