Eighty jobs are to go in Thurles, Co Tipperary, following the announcement yesterday that BSN Medical is to cease manufacturing orthopaedic soft goods at the end of the year.
In a statement, the company said the decision to close the plant was due to excess manufacturing capacity and the need to maintain cost competitiveness.
It said the plant had had "capacity problems" since last December when it lost the contract to manufacture the Futuro brand owned by German cosmetics giant Beiersdorf. This had "regrettably" resulted in the decision to cease operations in Thurles by the end of 2006, said Darrell K Jenkins, president of BSN's orthopaedics business unit.
The company has been manufacturing in Thurles since 1977, producing orthopaedic support products under BSN's Tricodur brand and custom-made burn garments for healthcare group Smith & Nephew.
"The company wishes to acknowledge the dedication, loyalty and performance of the Thurles employees and to thank them for their contributions to the business and [ their] years of service," said Mr Jenkins. BSN would be offering them very reasonable redundancy packages and would assist them in seeking new employment within the community.
Independent local TD Michael Lowry said he was shocked at the closure. "This is a terrible blow for the staff involved, for their families and for the town." Many people had worked at the plant for "a long number of years".
"I am urging the international management of the company to ensure that the maximum redundancy package is available for the staff and that every effort is made to ensure that alternative employment is found," Mr Lowry added.
The announcement was described as a "bad blow for the town" by mayor of Thurles John Kennedy. He called on the Government to take action to tackle the jobs situation in Thurles.
Thurles Chamber of Commerce president Paddy Barry also called for urgent action from State agencies to secure replacement jobs for the town and ensure workers were offered retraining.
Marian McCormack, who has worked for 15 years at BSN, said the announcement to workers had come "out of the blue".
"We are all absolutely devastated. We knew things were going slow but we got a big order and we were hoping and praying, even though 40 other workers had been let go last December," she said.
News of the BSN closure comes just two weeks after the announcement by Campbells that it is seeking new owners for its former Erin Foods plant in Thurles, sparking fears of 170 further jobs losses.