TECHNICAL textiles maker Low & Bonar is planning to cut more than half of its Scottish workforce and move some of its manufacturing business to the United Arab Emirates.
The company said 68 jobs are at risk in its Bonar Yarns division in Dundee which makes goods such as carpet backing and artificial turf for the sports and landscaping industries.
A spokesman for Bonar Yarns said: "Despite taking measures to improve the performance of Bonar Yarns, the business continues to operate in a highly competitive environment which brings continued pressure on sales prices and margins.
"Following an in-depth analysis to determine the best way to further improve the performance of the Bonar Yarns business unit, the strategic decision has been made to relocate part of the Bonar Yarns production from Dundee to Abu Dhabi."
Some carpet manufacturing jobs will be retained in Dundee as well as lines involved in certain artificial turf products.
A formal redundancy consultation process with the representatives of the affected employees has begun.
Low & Bonar can trace its roots to a partnership formed between John Low and George Bonar in 1903 to go into the jute trade in Dundee.
It still employs around 120 people in the city at what is the group's only UK manufacturing site.
Chief executive Brett Simpson, an Australian who joined the business in August and took over the top job last month, said: "We know that this will be a period of uncertainty for our staff in Dundee and we are committed to consulting fully with our employees and their representatives.
"We do believe however that the restructuring of our workforce is necessary to help us secure the long-term viability and competitiveness of Bonar Yarns in a highly competitive global marketplace."
In July Low & Bonar, which also supplies fabrics, fibres and textiles to sectors including building, automotive, agriculture and logistics, reported a rise in half-year profits from £3.4m to £5.2m.
Its revenues grew by more than six per cent from £184.1m to £196.3m.
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