The Comerama yarn manufacturing plant in Donegal is to close with the loss of 200 jobs, it emerged this afternoon.
Staff at the textile plant have been on short term working week since last year as the company attempted to cope with a global downturn in sales.
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Fine Gael Donegal South West TD Mr Dinny McGinley said: "This is yet another blow to the Gweedore Industrial Estate which has suffered almost 800 job losses within the last three years."
Mr McGinley called on the Tánaiste, Ms Harney, and other agencies to come together and rescue these 200 jobs.
"These jobs could still be saved. The factory is the most modern of itskind in Europe and it would be easier to maintain existing employment than tocreate new jobs," he added.
Sinn Féin representative for Donegal South West Mr Pearse Doherty said thatthere is huge anger and disappointment in the area this evening at theannouncement.
"People don't want to hear that a commission is to be established to lookinto this matter. There have been enough reports. What is now requiredis action," he said.