Twenty-five workers at the Ruibear Motair Teo (RMT) plant in Derrybeg, Co Donegal, have been told their jobs are to go.
The German-owned RMT plant manufactures rubber car components for the European market and was once one of the flagship employers in the Derrybeg area. Management has blamed a reduction in orders for their decision.
The plant was officially opened in 1991 by Charles Haughey and had plans to employ 400 people but this never materialised. The company has received State grants totalling over €7 million.
A union spokesman, Mr Declan Ferry, said there was no clarity as to what the future held for the remaining 80 employees. Management has said it will review the situation on a week-to-week basis.
Last week, 23 workers at the neighbouring MDR plant were told their jobs would be gone within a month.
Over 200 jobs have now been lost in the Derrybeg area of west Donegal in the past 12 months and a further 150 in nearby Falcarragh. This includes the closure of the EPI plastic carrier-bag manufacturing plant with the loss of 23 jobs. The closure of this company was blamed on the Government's 15-cent levy on carrier bags.
The establishment of an employment task force has been called for by Labour election candidate Mr Seamus Rodgers and the Fine Gael TD, Mr Dinny McGinley.