Greencore has confirmed it will close its Carlow sugar factory by mid-March with the loss of almost 250 jobs and streamline its operation in Mallow, Co Cork.
The Greencore sugar plant at Carlow
The company said the decision had been taken following a strategic review of Irish Sugar in anticipation of pending reform of the EU sugar regime and the increasingly competitive nature of its markets.
The Irish Farmers Association said earlier it would strongly resist any move to close either factory.
The Carlow plant, which has been operating since 1924 when it was the first sugar factory established by the State, employs 189 permanent and 137 seasonal staff. Seasonal staff are hired for about three months towards the end of the year.
Just under 200 permanent and 130 seasonal employees work in the Mallow factory.
Fine Gael's agriculture spokesman, Mr Denis Naughten, condemned Greencore's decision to close the plant.
"This announcement will have a huge impact on local beet growers and the local economy not only through the loss of employment but also the major spin-off it provided to local services," he said.
"This decision is also premature as it will at least be autumn 2005 before any decision is taken on the EU sugar reforms. It is important to note that there is not an overproduction problem in Ireland and it is therefore imperative that the Minister for Agriculture retains the current quota available to Irish beet growers."
The Labour TD for Carlow-Kilkenny, Mr Seamus Pattison, said the announcement was a serious blow to an area that had already suffered significantly from closures and redundancies.
"I believe that there is no justification for today's decision given that there is little clarity, as yet, about the final outcome of the review of the EU sugar regime," he said.
Ms Jacqui McNabb, chief executive Carlow Chamber of Commerce
"This decision may have more to do with realising the value of the Carlow site than in any changes in EU policy on sugar. Given the importance of the sugar factory to farming and the local economy generally, the government should immediately seek a meeting with the Greencore board with a view to seeking a reversal of the decision and should also redouble its efforts at EU level to ensure that any changes to the EU sugar regime do not destroy jobs in Ireland."
Chief executive officer of Carlow Chamber of Commerce, Ms Jacqui Mc Nabb, said the news was a "devastating blow".
"The business community is extremely disappointed by today's news of further job losses," she said. "The sugar manufacturing plant has been a much-valued employer in Carlow since 1926.
"The priority now is to find alternative employment for those who have lost their jobs as a result of this decision. Job creation in County Carlow must be placed at the top of the Government's agenda - it has been overlooked for too long."
She said the IDA had invested some €8 million in a new 70 acre Carlow Business & Technology Park which remains empty.
The Green Party said it deeply regretted the announcement but it believed the jobs could be saved if the plant switched to the production of ethanol, which can be used as a transport fuel.
The party's enterprise spokesman Mr Eamon Ryan said: It is a terrible pity that the Management of the
company and the Government don't see the potential to convert the plant to the production of ethanol which can be used as a transport fuel and which would help reduce our imported fuel bill."
Green Party deputy leader Ms Mary White, an elected councillor in Carlow, said that a decision to close the factory altogether would be a dreadful blow to the people of Carlow.
"Before those farmers quit their production and 200 workers lose their jobs, we want the company and relevant government agencies to examine the ethanol production option and help save these jobs," she said.