Peerless Rugs in Athy, Co Kildare, is to cease production by July 20th, making 65 workers redundant. The company has blamed competition from Third World countries for the closure.
Negotiations are to begin next week on redundancy payments. SIPTU branch secretary Mr Michael Dowling said the closure would be "a devastating blow to the 65 workers and the people in the town of Athy". The last new factory to open in the town was 17 years ago.
Mr Dowling called on the Tanaiste and Minister for Enterprise, Ms Harney, to give priority to Athy in future job-creation initiatives and retraining programmes.
Most of the workers to be made redundant have over 20 years' service and many are in their 40s or 50s. Mr Dowling said the union would be seeking "enhanced severance terms". The company informed the union of the plans for closure on Friday and cited low-cost competition as the main problem. The company also has plants in Cork and Mountmellick which are remaining open.