Batchelors has warned 40 workers they face redundancy at its Dublin plant because it was running out of water needed to can peas, beans and fruit juices.

The factory at Bannow Road, Cabra, is believed to be the second biggest user of public water supplies in the capital, after Guinness.

The company, which employs 235 people, insisted the threat was directly related to the crisis in reservoir levels, as householders continue to run taps to stop pipes freezing.

Burst mains - which are being made more difficult to detect because water chiefs are throttling, or reducing, flow pressure to conserve stocks - are making the situation worse.

A Batchelors spokeswoman vowed the protective notice on jobs would be lifted if, and when, supplies return to normal.

"Batchelors has now exhausted its own water storage supply and as a result will be forced to curtail production at the facility for the remainder of the week," she said.

"The situation represents a major blow for the company, and one which is likely to have a serious knock-on effect on its ability to meet customer demand, unless water supply is restored immediately to the plant."

A Guinness spokeswoman was unable to immediately confirm if the water shortage was having an impact on production at St James's Gate.

Environment Minister John Gormley, leading the Government's emergency response team, insisted unprecedented conditions across the country were improving.