Around 200 employees work at Bonar’s converted former jute mill complex in St Salvador Street, involved in the production of yarns for backings for premium carpets and artificial grass surfaces.

The jobs being axed are production floor posts, with workers being offered voluntary redundancy packages before any enforced cuts are made.

A spokesman confirmed the move to the Evening Telegraph and said that following the announcement to the workforce, there would be a period of consultation between the company and unions representing the affected workers.

“The main reason for the development is that there has been a shift in demand in the market for the type of product the site produces,” the spokesman said.

“The company is taking steps to reduce manufacturing activity at the plant and it is very unfortunate this means some jobs will be lost.”

The synthetic grass produced in Dundee has attracted customers from around the globe and the surfaces are now widely used for football pitches, tennis courts and ski slopes.

It has even been used for one of the world’s largest sporting events —the NFL Superbowl.

Last year, Bonar Yarns invested over £1 million to increase capacity at the Dundee factory.

However, it is believed its most popular products are now manufactured at its subsidiaries in Belgium and China.

Bonar Yarns parent company, Low & Bonar, switched its HQ from London to Dundee around six years ago.