The AIBP beef processing plant in Dromod, Co Leitrim, has been closed with the loss of 40 jobs. The plant processed beef for the export market.

Workers were informed on Thursday of the group's decision to close and were offered a financial package or alternative employment in another AIBP plant, a spokesman said yesterday. Most opted for the package. AIBP's nearest plants are in Longford and Clones, Co Monaghan.

AIBP purchased the Dromod plant in 1998 from the receiver of the Lyons estate. Last week, the workforce was told that, following a detailed inspection, the future of the plant had to be decided. "Having reviewed the situation, the option available to us was total reconstruction and that was not an option for us just now," the group spokesman said. There were no outstanding debts to farmers or workers, he added.

Local TD Mr Gerry Reynolds, who tried to raise the closure of the plant in the Dβil on Thursday, said the shutdown had come as a major shock to the local community.