Up to 54 jobs at a Donegal ceramics factory were under threat today following the management's decision to move the operation to a sister plant in Fermanagh.
Donegal Parian China's operation in Ballyshannon is to be moved four miles across the Border to Belleek.
The company said that jobs would be available in Belleek for some of the Ballyshannon employees, although redundancies are inevitable.
Councillors described the announcement as a major blow to the local economy.
Thousands of tourists are attracted to the Ballyshannon area every year to the Donegal Parian visitor centre.
Dinny McGinley, Fine Gael TD for DOnegal South West
Mr Dinny McGinley, Fine Gael TD for Donegal South West, said the announcement was not alone a severe blow to the Ballyshannon area but to all of Donegal.
"For many years Donegal Parian China has been a flagship company within the county. Not only did it provide valued employment, but the factory also attracted thousands of visitors and tourists to its beautiful showrooms.
"In fact, it gave the Donegal name international recognition. This is the latest in a long litany of job closures for Ballyshannon and South Donegal."
Some years ago, the Donegal Rubber Company closed with a loss of 100 jobs, the ESB has reduced its workforce in Ballyshannon and the Donegal Democrathas been relocated.
"Today's announcement is the latest cut - probably the unkindest cut of all - as the company has decided to concentrate all its production a few miles up the road in Belleek," Mr McGinley said.
"It is an indictment of the economic policies pursued by this Government and its predecessor that allowed production costs to escalate, even compared to just miles away in Northern Ireland. The Government and its Ministers have a responsibility to the county they represent. The haemorrhaging of employment from the area cannot be allowed to continue."