The decision to close the Irish Ispat stell plant in Cork will almost certainly proceed after management rejected a SIPTU rescue plan today.
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The package, negotiated at the Labour Relations Commission, included cost cuts and limited job cuts in a drive to make the company "cost-neutral".
Earlier today the Tánaiste Ms Harney met Ispat management in London and confirmed the closure of Irish Ispat is "irreversible."
She said the creditors' meeting planned for next week would now go ahead as planned. A meeting of creditors is scheduled to take place on June 28th.
"Unfortunately the company confirmed at my meeting with them that in their opinion the Irish plant is not capable of achieving viability," Ms Harney said.
"Consequently they have confirmed that their decision to close Irish Ispat is irreversible."
Mr Joe O'Flynn of SIPTU accused Ispat management of not giving the proposals the "serious consideration they deserved." He said enormous effort went into drafting the proposals and that it was "obvious that management had their minds made up about closing the company prior to the talks."
Mr O'Flynn added that SIPTU intended to push for a decent severance package payment for Ispat workers. The package of SIPTU proposals will be on offer as of tomorrow for any potential buyers interested in buying the company, he said.
The Haulbowline mill closed last week with the loss of 400 jobs.