Dundalk-based company Littelfuse yesterday confirmed it is to close with the loss of 134 jobs and transfer production to China. The closure will be phased over two years.
The company manufactures electronic components, and had sales of $467.1 million (€372.3 million) last year.
A major activity is the varistor product line which makes components that protect against over-voltage and are widely used in cars and white electrical goods.
A spokesman said: "The move is part of the company's strategy to rescue its varistor business and to expand its operations in Asia in order to be closer to current and potential customers and to participate in the overall growth of the region."
Employees and union representatives were informed of the closure yesterday afternoon.
David Samyn, vice-president and general manager of the Littelfuse electronics strategic business unit, told staff that "the decision to move production from Ireland was difficult, especially because of the many Dundalk employees who have contributed to the growth of the varistor product line".
Richard Dalton, Littelfuse Ireland managing director, said Littelfuse would provide employees with a severance programme and assistance in finding new jobs.
Fine Gael TD for Louth Fergus O'Dowd said he was very concerned at the loss of further jobs to the Far East, and it was clear that industry needed to become more competitive.
He said the closure of a company the size of Littelfuse would be a significant loss to Dundalk, and particularly to the workers and their families.
Dundalk Chamber of Commerce chief executive Bill Tosh said Littelfuse was a long-established business in the town and its closure was "very disappointing".
He called on job-creation agencies to devote more resources towards ensuring the mechanical-electrical sector continued to play a role in the local economy.