Concern was expressed yesterday that Irish Fertiliser Industries in Cobh, Co Cork, may be forced to close with the loss of 200 jobs and €16.5 million to the local economy.
Workers' representatives have contacted local TD's in the wake of mounting fears that the company looks set to shut its doors due to a decline in the international fertiliser market.
Ms Margaret Martin, chief executive of Cobh and Harbour Chamber of Commerce, said the closure of the plant would have a devastating impact on the economy of the whole harbour area.
"Losses in wages and salaries alone will be in the order of €11 million per annum.
"A lot of the workers have been with the plant since the commissioning in 1979.
"How can these people be expected to re-train and look for new work?"
Among the ancillary services which would be adversely affected are Irish Rail who have a three times daily freight service from the plant to Arklow and Cork, from where IFI exports almost 400,000 tonnes annually.
Ms Martin said IFI needs to be saved as it represents the only major employer in the area following the closure of Irish Ispat and Youghal Carpets with the loss of hundreds of jobs.
A spokesperson for IFI said the company is currently exploring all options with a view to keeping the plant open. No decision has been made on the future of the Cork operation but management say the business has suffered in recent years because of a serious decline in the fertiliser market.
There has been a decline in the consumption of fertiliser by farmers across western Europe due to two years of exceptionally wet weather.
This coupled with rising raw material costs at home and low fertiliser prices on the world market has put a heavy strain on the resources of IFI and other European manufacturers.
The Cork facility produces 530,000 tonnes of ammonia, 400,000 tonnes of urea and 20,000 tonnes of carbon dioxide annually.
Meanwhile, Cork Fine Gael TD, Mr David Stanton, called on the Government to address the problems being faced by management at the plant.
"If this plant closes it will have a knock-on effect on the local economy.
"We need to get in now and do something about it.
"We have already had a devastating blow to Cobh with the closure of Irish Ispat. We can't afford another one."
Cork County Councillor, Mr John Mulvihill (Lab), urged the Taoiseach and Tánaiste to personally intervene in order to prevent a crisis.
IFI employs 650 people at facilities in Cork, Arklow and Belfast. Liquid ammonia is transported from Cork to the other plants for processing.
Representatives of the company met with workers in Cork yesterday to discuss the situation.