Computer keyboard maker Key Tronic, which employs 60 people in Dundalk, has announced it will lay off 200 people, or one third of its workforce in Washington. A company spokesman said the restructuring "does not affect the Irish operation at all". The company is moving its product assembly activities to Mexico where wage rates are lower.

The transfer of some operations to Jaurez, Mexico, where the company already employs 2,100 people to make keyboards and electronic input devices, is necessary to keep pace with competitors, according to Key Tronics treasurer, Mr Ron Klawitter.