Irish snack manufacturer Largo Foods is set to shut down its plant in Gweedore, County Donegal with the loss of 140 jobs.
The decision comes as part of the company's strategic review of its operations in Ireland and Britain.
The review identified the need to consolidate operations and reduce overall costs to allow the company operate sustainably and compete in the snack food market, reported Irish Examiner.
The company plans to shift the production to its existing facility in Ashbourne, County Meath, which produces potato based products and sources around 30,000 tons of potatoes.
Largo Foods CEO Maurice Hickey was quoted by the BBC as saying that the higher production costs in County Donegal led the company to take the decision.
State agency Údarás na Gaeltachta spokesperson said, "An tÚdarás will prioritise its efforts to put in place a strategic marketing drive in a bid to attract new investment and employment opportunities to Gaoth Dobhair Business Park."
Largo Foods offers a range of branded and own label products to customers in Ireland, UK, Continental Europe, Australia, Asia and the Middle East.
