Donegal town is to lose 560 jobs with the closure of a medical product factory.
This morning, Hospira announced its plans to close the operation in 18 months.
A statement from the company said that the combination of excess manufacturing capacity within Hospira and the high cost of manufacturing in Ireland had greatly influenced the decision
Hospira is planning to transfer the products manufactured in Donegal to its plants in Costa Rica and the Dominican Republic, although the announcement does not affect operations at the Hospira plant in Sligo.
Plant director Dermot Murphy said: "To ensure long-term success, Hospira must focus on improving profitability through cost savings and increased operational efficiency."
"This is both both an economic and industrial bombshell for the entire region," said Fine Gael Donegal South West TD Dinny McGinley
Minister for Agriculture Mary Coughlan said: "I will be pressing for the Government's decentralisation plans for Donegal town to be fast-tracked in order to address quickly what is a serious blow to the town.
"I will use the next 18 months before final closure to ensure that every effort is made to find replacement jobs for those affected," she added.
Siptu's Sean Reilly warned the losses could turn Donegal into an economic black-spot. "There was no expectation whatsoever that management was planning such a move. The workers are devastated by the news," he said.
Hospira, formerly known as Abbotts, has been an industrial flagship in the north west since 1978. Hospira employs 13,000 people internationally and has its headquarters in the US state of Illinois.