Irish snack producer Largo Foods has announced the closure of its site in Gweedore, in County Donegal, putting 140 jobs at risk.
The crisp maker said all manufacturing would be transferred to its main plant in Ashbourne.
Largo said 70 staff “would be offered the opportunity to transfer to full-time jobs in Ashbourne,” as it entered into a consultation period with staff regarding the decision.
Maurice Hickey, chief executive of Largo Foods, said the plan to transfer manufacturing was “made necessary” as the company fought to cut costs in “the very competitive snack-food market”.
“85% of the output from the Gweedore plant is exported to the UK and further afield. The volume of production at this plant does not provide the scale of activity necessary to produce snack-foods in a cost effective manner. Moving production from Gweedore to Ashbourne would also enable the company to centralise activities at one site thereby improving cost competitiveness.”
Hickey added the firm was in “discussions with [government agency] Enterprise Ireland regarding the continued development of our business in Ireland”.
Largo supplies branded and private label products to customers in Ireland, the UK, Continental Europe, Australia and the Middle East. It sells crisps and snack food products under the Tayto, King, Hunky Dorys and Perri brands in Ireland and Velvet Crunch in the UK.