Peerless Rugs in Athy, Co Kildate, is to close with the loss of 65 jobs, it was confirmed today.
The company has operated in the town for 27 years. Following the announcement, the Tanáiste, Ms Harney, said the company closed because it was becoming increasingly difficult for companies in Ireland to compete.
"Unfortunately it [Peerless Rugs] is yet another company which has found it increasingly difficult to compete with lower cost manufacturing locations," Ms Harney said.
"Its closure highlights the need to develop a positive enterprise environment in which newer more competitive business sectors can operate effectively and grow their sales in export markets."
Mr Michael Dowling, secretary of the SIPTU's Athy Branch, described the announcement as a devastating blow to the town of Athy compounding an existing unemployment problem.
He called on the Government to give priority to the town in future job creation initiatives.
According to Mr Dowling the majority of the workers made redundant have twenty years service with the company. SIPTU is to enter into immediate negotiations over severance terms.