Crisp maker Largo Foods is to close its manufacturing facility in Co Donegal with the loss of 140 jobs.

Largo said it intends to transfer all manufacturing from Gweedore to its main plant in Ashbourne, Co Meath.

"Our proposal to transfer manufacturing from Gweedore has been made necessary by the need for the company to continuously reduce costs in the very competitive snack-food market where Largo Foods trades head to head with major global brands," Largo Foods chief executive Maurice Hickey said.

Under the plan approximately 70 of the 110 full-time and 30 part-time employees in Gweedore would be offered the opportunity to transfer to full-time jobs in Ashbourne.

Largo Foods makes and sells crisps under the Tayto, King, Hunky Dorys and Perri brands in Ireland and Velvet Crunch in the UK. The company currently employs 510 people in Ireland and 120 in the UK and has an annual turnover of more than €100 million.