The Allergan plant in Arklow, which employs 360 is to close with the loss of all jobs after the company decided to move its manufacturing activity to a similar facility in Costa Rica.
According to a statement from the company, the decision was made on cost grounds with wages and corporation taxes being significantly lower in Costa Rica.
Staff were informed of the decision at a meeting with management at 8.30am today. The first group of employees will leave the company in December this year with production expected to cease in the middle of 2009. The company said the restructuring and transition would cost between $60 to $65 million.
Raymond Diradoorian, executive vice president with Allergan, said: "For economic and operational reasons, Allergan will consolidate the manufacturing of its breast implant products to the company's state-of-the-art facility in Costa Rica."
Raymond Diradoorian, Allergan executive vice-president
He said the Costa Rica plant could meet current and future production demands and added that the Arklow would have required a very high level of investment to maintain competitiveness.
Allergan makes silicone breast implants at the Wicklow operation. The company also has a plant in Westport, where it makes the drug Botox used in cosmetic surgery.
Mr Diradoorian said the company remains "strongly committed" to its other Irish operations where it employs over 750 people at its Pharmaceutical Plant in Westport, Co Mayo and 70 people at its European services Centre in Dublin.
Paul Moody, general manager, Allergan Arklow said it was a sad day for the hard-working team in Arklow. "Allergan needs to look to the future needs of our customers. Increased demand means that we have to move manufacturing to a site that has the capability to meet this growing demand."
Talks are now due to begin with the main union at the plant Siptu. Most of the workforce in the plant are in the 25 to 45-year-old age group and a spokesman said most have a high level of education.
Allergan, which employs more than 7,500 people worldwide, is also due to report full-year results today.
Minister for Enterprise, Trade and Employment, Micheál Martin, described the closure as "very disappointing". He said the workers at the plant were now "a top priority for the Government and its job creation and training agencies".
Mr Martin added that Enterprise Ireland and Fás would meet with workers to help them find new jobs and that IDA Ireland would continue it's work to attract investment to the region.
The Arklow plant has been operating since 1989 when it was opened by global healthcare company Inamed. Inamed was then acquired by Allergan in 2006 for $3.2 billion.
Wicklow Labour TD Liz McManus said the closure was a "shocking blow to the local economy".
She called on Mr Martin to set up meetings with the IDA and public representatives to come up with a plan for alternative employment.
Local Fine Gael TD Billy Timmins said: "The plant closure is a devastating blow for the people of Arklow who have already lost faith in the Government for their failure on their commitment to decentralise a semi-state body to the town."
Fine Gael enterprise, trade and employment spokesman Leo Varadkar said the decision to move the production abroad highlighted "the urgent need for a national upskilling programme for Irish workers"