Fears are growing for the future of almost 700 jobs at a Co Kerry container-crane manufacturer, Liebherr Ireland, where a contract looks set to be lost to a Chinese competitor.

Killarney-based Liebherr, Kerry’s largest manufacturing plant, confirmed yesterday that it had begun to transfer some operations to Germany.

In a statement the company said there was "uncertainty" surrounding the Killarney operation as a result of industrial action in recent weeks by a minority of workers, all members of Siptu, over a retrospective pay claim. It said a Labour Court decision on Friday to award a 2.5 per cent claim to all employees dating to 2009 was extremely disappointing.

Sources confirmed last night that a major contract was in serious jeopardy and likely to be lost to a Chinese competitor as a result of the disruption.

The container-crane factory, which has been in Killarney for 55 years, has taken on 150 new employees over the past 18 months. Average annual pay for a skilled worker at Liebherr in Killarney is €52,000.

The action by the 300 members of Siptu includes a ban on overtime at the factory which has been operating around the clock to fill orders. Pickets were placed on the factory on a day when a large group of foreign industrialists were visiting.

The company said a minority of employees seeking unreasonable pay awards meant the viability of the factory “has been seriously compromised”.

Siptu described the company statement as “unhelpful”.