Eastman Chemicals in Co Kilkenny is to close next year with the loss of 50 jobs. The company, formerly known as Lawter International is to pull out of Ireland at the end of March next year.

Eastman Chemical Company, which produces a resin for various types of printing inks, acquired Lawter International in 1999. The facility has approximately 50 direct and indirect employees at the plant, according to news reports yesterday.

The reports added that Eastman said the re-evaluation of facilities was needed in order to control costs and improve profitability.

Negotiations are now taking place with the unions, which are expected to take several weeks, during which time the company says activities at the site will continue as normal.

Opposition parties were quick to capitalise on the news, which comes on the eve of a Budget that is expected to focus on improving the competitiveness of the economy.

Mr Phil Hogan, the Fine Gael enterprise and employment spokesperson blamed the closure on stealth taxes and charges on industry, including insurance.

Mr Brian O'Shea, the Labour deputy for Waterford, said it was the second jobs blow for the area, following on the announcement that Michell (Ireland) in Portlaw was to close.