A Hong Kong based company which set up in Limavady, Co Derry, last year with £10 million sterling in grant aid from Northern Ireland's Industrial Development Board (IDB) has been forced to close.
Benelux Manufacturing, which made compact disc covers, opened in Limavady 12 months ago. At its height, it employed 250 people but, because of trading difficulties the workforce dropped to 100.
On Tuesday evening, the Benelux management announced to its remaining employees that it was being forced to close "with immediate effect".
Mr William Ross, the Ulster Unionist MP for East Derry, said serious questions needed to be asked about IDB investments and the viability of such grant aided projects.
The IDB is expected to try and operate a "claw back clause" in its contract with Benelux to recover the £10 million cant aid.
