AVX, the electronic component manufacturer, will close its European distribution centre in Northern Ireland with the loss of 65 jobs over the next six months.
The closure of the Larne, Co Antrim plant is part of the Japanese group's global restructuring programme, which aims to reduce manufacturing and administrations costs by $109 million (€121 million) across the group.
As part of this programme, it has confirmed plans to close a ceramic component manufacturing plant in the US, which employs 340 people.
AVX currently employs 800 people at two sites in the North.
The majority of the staff are located in Coleraine, Co Derry, where the company has an extensive research and development facility.
The Japanese group said yesterday that the closure of its Larne site was seen as necessary to reduce costs.
Mr Martin McGuigan, European vice-president of AVX said: "It is essential that our distribution performance fully supports the continuous improvements we are seeking in the service we provide to the customer.
"While we very much regret the short-term uncertainty it creates, we believe our proposed move will strengthen our overall business and enable us to respond faster to customer needs."
Mr McGuigan said the group would offer employees affected by the closure the opportunity to transfer to possible positions at its Coleraine site.
The decision to close the Larne site is the latest blow for the group, which axed 100 jobs in Coleraine in June.
At one stage, AVX had employed 1,300 people in Northern Ireland.
The group is one of the world's leading manufacturers and suppliers of a broad range of passive electronic components and related products. Its main customer is the telecommunications industry, but it also supplies the data processing, automotive and medical sectors.
AVX's fortunes are closely linked to the performance of these sectors and, when they experience a downturn in demand, the Japanese group also sees erosion in its customer base.
Earlier this week, AVX announced better-than-expected sales figures for the second quarter, to September 30th, 2001. Total sales were $305 million - $30 million higher than anticipated. AVX has warned that the outlook for the next quarter remains sluggish and that any growth expectations have been pushed into 2002.
The latest jobs blow for the North reflects the slowdown in the manufacturing and service sector, which is highlighted in the third quarterly survey from the Northern Ireland Chamber of Commerce.
According to Mr John Stringer, chief executive of the business body, manufacturers have suffered a decrease in both orders and deliveries from the home and export markets.
The chamber of commerce said the survey, conducted before September 11th, showed that business confidence levels had fallen in the North and that any plans to recruit staff are on hold.
"International events and local repercussions since the survey have highlighted the fact that Northern Ireland will not escape going through a difficult period for most sections of our economy," Mr Stringer said.
