The last major tannery in Ireland, based in Portlaw, Co Waterford, is to close with the loss of 60 jobs. Michell Ireland Limited opened in 1993 and processes, for export, up to 25 per cent of the cattle hides in the Republic.

The decision, which was taken by Michell's Australian parent company this week, was announced to staff at the plant yesterday afternoon. A company spokesperson said the decision to close the plant had been taken with great reluctance but ongoing losses could no longer be sustained.

"Massive efforts by Michell Ireland management and employees over the last two years to rationalise, automate, improve efficiency and expand markets have not been enough to counteract the global rationalisation in the leather industry exacerbated by a strong euro and rising costs in Ireland." The enormous investment made by the company to meet Environmental Protection Agency requirements was also a major drain on the competitiveness of the company.

Michell will meet the union and employees in the coming days to outline details of redundancy packages and outplacement services. It is anticipated the wind-down and plant closure will be completed by year-end.

Management at Michell Ireland sincerely thanked staff for their efforts to return the business to viability.

Deputy John Deasy of Waterford County Council expressed his regret at the company's decision. "This will have a detrimental impact on Portlaw and its environs. Employment at a local area has always been a serious concern and this latest news exacerbates the situation."