Smurfit Print is to close with the loss of 118 jobs - an indication that traditional old economy-style industries are now being hit by the downturn in the high-tech sector.

The printer, based in Glasnevin in Dublin, said a serious reduction in the demand for print, caused by the downturn in the Irish high-tech sector, had resulted in unsustainable trading losses.

Smurfit Print, a subsidiary of Jefferson Smurfit's Irish division, was one of the leading producers of print for the high-tech industry in Ireland, providing everything from computer manuals to disk-drive covers for clients including Microsoft, Dell, 3Com, Compaq and Corel. It had been involved in this market since the early 1980s.

"The business would have been very much dependent on the high-tech sector and it's just become a victim of the downturn in that area," said a spokesman. "The company has been negotiating in the last five months with union representatives to try to rationalise the plant. Despite the best efforts on all sides, with the downturn becoming even more severe, it's not been possible for the company to continue to trade."

No figures for losses sustained by the company were available.

The Dublin Printing Group of Unions said it had secured its members' backing for 34 redundancies together with major changes in work practices and that the closure was not justified. It is seeking a meeting with the Tanaiste, Ms Harney, to request her intervention.

The company will close following the statutory notice period of 30 days.