A day after Xerox announced it was to close the inkjet facility at its plant in Dundalk with the potential loss of more than 400 jobs, the Louth town remained in a state of shock and anger.

Most employees arriving at the plant to begin the 8 a.m. shift were reluctant to talk. Those who did were clearly still disappointed by the news from the previous day.

"Nobody was expecting it," said one worker. Another added: "We're shocked and very angry. They just pulled the plug. It's a loss of jobs and there's no other big employer in the town."

One employee, who said he was not affected by the cutback, described the news as "a disaster" for the town.

Local retailers were despondent about their prospects. "We rely very much on the industry around this area, so it will affect us," said one. "Symbolically, it will have a big effect because Dundalk has been doing well and Xerox was the jewel in the crown for the town. It's the biggest plant in the town. It was supposed to have 2,100 people next year and most people will be thinking there's no way it's going to get to that now."

A row of recently built houses across the road from the massive Xerox site perhaps symbolises more than anything else what this plant means for the town - money, jobs, investment and hope.

The Xerox announcement follows on a number of other business closures in the area, including the Guinness-owned Dundalk Packaging and the loss of hundreds of jobs when Panasonic closed last year.

Mr Francis Murphy, vice-president of Dundalk Chamber of Commerce, admitted the news was a blow but said it would not damage the confidence of the Border town, which, in recent years has been benefiting from inward investment and increasing employment as a result of the peace process, following years of neglect and under-investment.

"This is a blow but it is not the death knell for Dundalk. The determination will be there to push on," said Mr Murphy.

A number of initiatives, led by the chamber and supported by bodies such as Louth County Council, the County Enterprise Board, Dundalk Urban Council and the local institute of technology have been put in place to facilitate such investment, according to Mr Murphy.