Taoiseach Bertie Ahern pledged that efforts would be made to find replacement jobs for the 350 workers at the NEC plant in Ballivor, Co Meath.
He said that Minister for Enterprise, Trade and Employment Micheál Martin, the agencies operating under his remit, and Meath County Council, would take every step to secure alternative employment.
"It is true that we have continued to suffer job losses over a number of years in some sectors of the manufacturing industry. As has been pointed out in report after report, the only way we can protect ourselves is by developing our research and development and innovation, and providing higher quality and higher skilled jobs so we move up the value chain."
Mr Ahern was replying to Fine Gael leader Enda Kenny who said that every politician was concerned about the impact the closure would have on the families and workers involved, as the plant had been in operation for more than 30 years. It followed the announcement in the past month or so of job losses in Sligo and elsewhere.
"While no one decries the strength of the Irish economy, credit for which goes to the workers, and everyone can share in that credit, there are fragilities and strains in the economy that the Government should be taking seriously," said Mr Kenny
Mr Ahern said he did not believe that the State could be complacent about its competitive position.
"Maintaining our attractiveness as a competitive and profitable location in which to do business is a key priority. As we undergo fundamental change, we can no longer compete as a low cost location for basic manufacturing investment. We will not be able to compete in that environment because we are no longer a low cost economy."
