Enterprise Ireland has confirmed it is to remove its funding for a test-and-support facility for plastic products in February next year and that the facility will close.
Enterprise Ireland said it had worked with industry representative in an effort to allow the Polymer Development Centre in Athlone continue on an independent basis but it had proved impossible to secure funding.
The facility employs nine people. Enterprise Ireland has provided an average of €700,000 per annum to fund the service over the past three years.
A spokesman for Enterprise Ireland said the decision was not based only on finance. He said the Polymer Development Centre was never viewed as a long-term Enterprise Ireland project and the hope had been that it would have become independently funded. He added that that the decision to cease funding the centre had been taken two years ago.
The Irish plastics sector industries employs some 9,000 people.