SIPTU has said it is confident the majority of the 204 jobs at Thermal Heat Exchanger Systems in Drogheda, Co Louth can be saved.
The company petitioned for an examiner in the High Court on Monday because it is incurring unsustainable losses.industries.
"The appointment of the examiner was considered to be the most appropriate option to remedy the situation," said managing director, Mr Kevin Kidney. About Pounds 500,000 would be needed to cover existing production costs. This is in addition to about Pounds 200,000 which was invested earlier this year.
The examiner, Mr Rory O'Ferrall of Deloitte and Touche and SIPTU agree changes are required in work practices.
Two years ago, the German company which owned the plant sold it and it is now privately-owned by a German family.
A Thermal Heat Exchangers spokeswoman said: "Our market is good and healthy and we have a very skilled workforce, but our cost base for the level of output is too high. We are hopeful a rescue package can be put in place."
