THE ODLUMS milling and packaging plant in Sallins, Co Kildare, is to close with the loss of 26 jobs.

The company says that it plans to continue operations at the Sallins Mill for up to 18 months.

The move follows the decision by Odlums to sell the rights to its McCann's cereal product in the US to an American company.

Odlums said that the American firm was in a better position to develop the brand in the US market.

"Odlums will continue to supply the American market with product for some months. Production will continue at the Sallins Mill for up to 18 months . . . Odlums' business is primarily focused on the home market and the brand has limited potential to develop overseas in a highly competitive market," the company said.

The trade union Siptu, which met management yesterday, criticised the closure and said that the mill had been profitable.

Siptu organiser in Co Kildare Adrian Kane said that the new owners of Odlums, Origin Enterprises, had "a lack of vision in developing markets in America" and argued that it was more interested "in developing a land portfolio than the milling business".

"Odlums spent the last decade growing a very successful business for a high value and quality range of oats-based cereals retailing under the brand name of McCanns in America.

"This product had achieved a great deal of success, with Oprah Winfry even endorsing the product as her cereal of choice," Mr Kane said. "This was one of the few success stories of an indigenous Irish-owned food-processing company.

"The company has insisted that the decision was made because of the weakening dollar, but if there was any commitment to the business this decision would not have been made. Origin had recorded a profit of over €70 million at the end of July 2008. The company's own end-of-year report claims that the Odlums group is 'performing well'."