More than 100 jobs are to be lost at the troubled Fulflex elastics manufacturing plant in Limerick.
Blaming intense global competition, its owner, the Moore Company, said it would cease manufacturing at the factory in a bid to stave off huge losses.
Some 108 managers, manufacturing staff and other related posts will be lost from the company's workforce of 124.
In a statement, the US firm paid tribute to the enormous contribution of the employees at the company, both past and present, since operations began in Limerick more than 35 years ago.
The company said, however, that competition from abroad has forced the company into a loss-making situation.
"The intense global competition under which the company has been operating since 2004 has put the organisation into a situation where it has been incurring losses and, without a significant reorganisation, the company will make substantial losses in 2006 and beyond," according to a company statement.
Customers will continue to be supplied from lower cost factories around the world and Fulflex will maintain its presence in Limerick with 16 people employed there.
David Burke, chief executive officer of Fulflex, informed employees yesterday of plans to shut the plant.
He outlined a string of difficulties which had brought about the closure, including a huge reduction in the price of elastic - substitute elastic has halved in price over the last four years.
Increased costs were also blamed, especially raw material costs, which was further exacerbated by high manufacturing costs in Ireland, in particular labour costs, and the strong euro compared with the US dollar.
"This decision was a very difficult one for the board to make," Mr Burke said. "Indeed, it was all the more difficult because of the great contribution employees in Limerick have made over more than 30 years.
"However, we have all been aware for some time of the company's financial difficulties due to the intense global pressure."
Fulflex International, one of the world's biggest manufacturers of nappy elastic, has operated in Limerick since 1969. A decision on severance payments will be made by April 10th.