In a statement released earlier today, Killyleagh, Northern Ireland-based company said it regretted the decision which it blamed on "the unsustainably low level of the company's order position and substantial losses already incurred this year."

"Following five years of profitability, the company has faced extremely challenging market conditions in 2004,” the statement continued.

"Demand has been weak from all major markets and the company has suffered from the weakness of the US dollar, resulting in significant losses being incurred."

International Leathers (NI) Ltd has been tanning and selling lambskin leather from its plant in Killyleagh, Co Down since 1990.