The strong pound abroad has been blamed for the loss of the nightshift at a Wilsden mill.

A total of 38 jobs are to be axed at S H Rawnsley's Birkshead Mill - including the nightshift of 20.

The decision to cut the jobs follows the collapse of the firm's export trade to Italy because of the strength of the lira.

The firm, part of the Birstall-based Allied Textiles group, weaves cloth for the Italian fashion industry and has seen the lira rise from about 2400 to nearly 3000 against the pound over the last few months.

The company is in negotiation with textile unions over the job losses which are out of a workforce at 118. No one from the textile section of the Transport & General Workers' Union was available for comment today.

Philip Whiteoak, mill manager at S H Rawnsley, said today exports made up a very high proportion of the company's business.

He said: "I am devastated at having to make these redundancies as I have known many of the people I am making redundant for many years.

"The Government is doing nothing to about high interest rates and industry is going down the pan as a result."

Dr Derek Wood, managing director of Bradford textile firm Bulmer & Lumb and a director of Allied Textiles, said: "I took responsibility for the Birkshead Mill in mid-February when it was clear there were going to be problems. We are aiming to ensure the mill continues to operate."

Bradford textile group Drummond, which this week announced a profits warning, is also to cut jobs because of the strong pound at its Huddersfield-based John Crowther woollen mill.

The mill, which employs 150 workers also making cloth for the fashion industry, has made losses which will affect the profitability of the group.

The strength of the pound has encouraged a flood of cheap clothes into Britain from Italy and France which have also hit the companies.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.