Five hundred jobs are at risk in Lurgan as a refrigerated transport company has been earmarked for closure.

Morgan McLernon is a subsidiary of English-based Culina Group.

Culina Group issued a statement confirming a proposal to shutter the business.

A spokesperson said: “A period of meaningful consultation has now been entered into with those colleagues affected.”

Morgan McLernon’s website stated the company has more than 140 vehicles and has been in operation for over 50 years.

Its clients include Marks and Spencer, Tesco, Asda and Aldi.

In 2017, Culina Group bought a majority share in Morgan McLernon, making the Lurgan business the largest haulage operation in both Northern Ireland and the Republic of Ireland.

Sinn Féin MLA John O’Dowd expressed concern at the development.

“This announcement will be devastating news for the workers at the company and for the local economy,” the representative for Upper Bann said.

“It should not be lost on anyone that the company has pinned much of the blame for this announcement on the Brexit fallout,” he said.

Mr O’Dowd said that in the absence of an executive, he would be contacting the Permanent secretary at the Department of Economy, asking what they can do to support the company and its workers.

The Democratic Unionist Party MP for the area, Carla Lockhart, also reacted to the news, describing the company as a “major employer” in her constituency.

“I have been shown the letter from management to workers which explains that, despite their best efforts, this decision has become unavoidable because of the negative implications of Brexit in Northern Ireland which are of course defined by the difficulties arising from the imposition of a border down the Irish Sea.”