A management buyout (MBO) of the doomed Guinness packaging operation in Dundalk is unlikely say Enterprise Ireland as the drinks group plans to move the plant's machinery to Belfast.

"We are not aware of any moves on an MBO and have had no discussions on the topic," said Mr Jim Mulcahy, the North East Regional Director of Enterprise Ireland. Mr Mulcahy is co-ordinating the Inter Agency Group set up by the Tanaiste in the wake of the announcement last month by Guinness that it plans to close Dundalk Packaging with the loss of 200 jobs.

Mr Mulcahy said that their belief was that Guinness will move the beer canning machine located in Dundalk to its Belfast packaging company which is being expanded. If this happens then there would be no business for management to buy, he said. The same applies to attempts to find a buyer for the business.

A spokesman for Guinness Ireland Group said last night that no decision has been made on the future of the plant and machinery in Dundalk.

Guinness says it has to rationalise its Irish operations because of increased competition in the Irish drinks market. Belfast was preferred over Dundalk because labour costs are lower in Northern Ireland.

A total of 290 Guinness jobs are to go in Dundalk as the company is also scaling back operations at its brewery in the Co Louth town which makes Harp lager.

The Inter Agency Group - which includes FAS, IDA Ireland and the Louth County Enterprise Board - will concentrate its efforts on minimising the impact of the closure on the local economy. This will come down to finding a replacement industry if - as expected - the machinery in the packaging factory is moved to the North, said Mr Mulcahy.