Boart Longyear, one of the oldest manufacturing operations in the Shannon Free Zone, closed yesterday with the loss of 42 jobs.

The company employed 55 at its Shannon base, but is to retain 13 jobs in a sales team that will continue to operate from a new premises in the Shannon area.

The manufacturing jobs are to be transferred to Wuxi, China and Mississauga, Canada by November.

Boart Longyear has operated at Shannon since 1960 and supplies products, systems and services to the natural resource, construction and quarrying industries worldwide.

Yesterday, the company's president and chief executive, Paul Brummer, explained: "The move is driven by global market forces that have seen the Hardrock Tools industry face extreme pressure over the past decade. It is caught between no meaningful price increases and steadily increasing labour and raw material inputs."

Mr Brummer added: "Sadly, the numbers speak for themselves. To remain competitive, Boart Longyear must maximise efficiencies by moving from a regional to a global structure and harnessing the synergies that exist within the group.

"This means consolidating our manufacturing plants so we can single-source products from global centres of excellence and, as part of this process, the Shannon business will be transferred to Boart Longyear's factories in Wuxi, China and Mississauga, Canada."

Mr Brummer said that Boart's Shannon manufacturing facility has played an important role in contributing to Shannon's industrial development through employment, resources and technology.

He added: "However, the group must respond to the long term interests of all its stakeholders and it is with deep regret that this decision has been necessary."

Mr Brummer stressed that the major review of the group's Hardrock Tools business that ultimately led to the decision was initiated several years ago.

The company's regional director for Europe, Holm Oostveen, said: "Boart Longyear assures all stakeholders affected by the intended closure of its Hardrock Tools manufacturing operation that it will meet all its obligations in a fair and reasonable manner."

Local independent councillor Patricia McCarthy expressed regret at the closure.

"The decision today represents further erosion of the Free Zone's industrial base and I am not at all confident that with Shannon Development no longer having responsibility to promote inward investment into the zone that the jobs will be replaced," she said.