The Erin Foods factory that has been in operation in Thurles, Co Tipperary, for the last 46 years is to close next June with the loss of 95 jobs, the company announced last night.
A statement from Premier Foods Ireland, which owns the plant, said last night that it had conducted a group-wide review, and this had recommended the consolidation of production of key brands across the company's portfolio.
"As a result, consultation has commenced with employees and their representatives regarding the proposed closure of the Premier Foods, known locally as the Erin Foods plant in Thurles, Co Tipperary, by June 2008," it said.
"This proposal, if implemented, would mean the loss of 95 jobs. Premier Foods is aware of the impact this proposal would have on employees and their families and the company is already in discussion with employees and their representatives to assist them in every possible way," it said.
A spokesman for the company said the range of products manufactured there will be made in one of the group's British plants from next June.
That range includes Erin soups and sauces, Campbell soups and some MacDonald sauces made at the Thurles plant. Workers at the factory, who will be meeting management at 2.30pm today, said the reason for delaying the closure was to permit the plant to fulfil a contract that the company has to provide Batchelors with stock for the coming eight months.
Were it not for this agreement, they said yesterday, the plant would have ceased operations immediately, they said.
The closure is a major blow to the town, which has suffered significant job losses in recent years, including the closure of Thurles Sugar Factory and BSN Medical. It has led to calls on the Minister to take action to address the jobs situation in Thurles.
Cllr Jim Ryan said that news of the closure was "shocking". He called on all politicians to come together in a bid to attract alternative industry to Thurles.