There are fears that up to 500 jobs are to be lost at a car parts factory in Co Westmeath.
Workers at the Iralco plant in Collinstown have been informed that the company is to go into voluntary liquidation.
The firm, which designs and develop car components for Volvo, Bentley, Ford and Volkswagen, is one of the longest established manufacturing companies in the midlands, having been in Collinstown since 1964.
In a statement Iralco's board of directors said the company had been in financial trouble for some time.
"The company operates in a highly competitive global market and it had been struggling for some time to overcome the increasing costs associated with manufacturing in Ireland," management said.
"This high cost base combined with relentless price reductions from customers became unsustainable."
This is the third major job losses in the midlands in recent weeks, coming on top of the loss of 66 jobs in Kimball Electronics in Longford and 100 at Nexans in Athlone.
Willie Penrose, the Labour Party's spokesperson on Enterprise, Trade and Employment and local TD for Longford and Westmeath, said the liquidation represents one of the most serious economic blows to hit the midlands for many years.
"The loss of these jobs will be a shocking blow to the workers there, many of whom have given decades of service to the company. They now face the loss of their incomes, while having to try to maintain mortgage payments and provide for their dependents," said Mr Penrose.
Fine Gael's Labour Affairs spokesman Damien English TD said the Government had to take some responsibility for spiralling business costs.
“Iralco is a pivotal employer in this part of Co. Westmeath. For 30 years it has provided regular work for employees across a large swathe of the county, with many staff travelling from 40 miles away on a daily basis," said Mr English.
"The loss of this facility will leave a gaping hole in the local economy and community which will be very hard to replace in the current economic downturn," he added.
