Cider maker C&C plans to cut up to 70 permanent jobs from its production plant in Clonmel, Co Tipperary as a response to the downturn in sales of its Magners brand in Britain.

Staff and unions at the plant were informed of the move on Tuesday, the day that C&C issued its second profit warning in three weeks.

C&C employs about 650 staff at the plant, the majority of whom are members of Siptu. The company said that it would issue four weeks' notice of its plan to implement the redundancies by early next week.

The job cuts will take effect in early September.

Siptu declined to comment on the move, but it is understood that a meeting between the union and management has been scheduled for next Wednesday.

C&C said the redundancies are necessary due to "high stock" levels and a "downturn in sales". It declined to comment on the possible cost savings involved with the job cuts.

The company said it hoped the layoffs would be "temporary" and that staff could be rehired if the market turns around.

C&C has recruited 190 staff at the production facility over the past 12 months as capacity was expanded.

In May, C&C outlined plans to spend up to €70 million on a new warehouse in Clonmel to cope with the rapid growth of Magners in the UK.

The group has already concluded a €200 million investment in its 100-acre Tipperary facility to increase its cider-making capacity to 500 million litres, more than double the current output of Bulmers (its cider brand in Ireland) and Magners.

On Tuesday, C&C said its profits for the six months to the end of August 31st could be 35 per cent below the same period of 2006. This would result in a €40 million hit to its profits in the current six-month period.

C&C said sales of Magners deteriorated at an unexpected rate in the second half of July due to poor weather in Britain and increased competition.

C&C's share price declined by 27 per cent, or €2.23, on Tuesday to close at €6. The stock regained 25 cent yesterday in Dublin yesterday.