The IDA regional manager, Mr Frank Conlon, said he was very disappointed by the AFL decision to close its Dundalk operation. "The company has been there a long time and were good employers. It is always difficult in every situation where a company has to close and the entire workforce has to come to grips with the situation."
Since January 2000 Co Louth has lost close to 1,800 jobs, the bulk of them in the greater Dundalk area.
In the light of the global economic backdrop and the impact of the September 11th attacks, he said that there has been a fall-off in demand in many industries.
The IDA is working with its existing pool of companies and encouraging them to take action to become resilient to such market changes.
"I hope what we have experienced in the north-east is the bulk of the job losses." However, the global downturn has also impacted on future investment in Ireland.
"At the moment our pipeline (of potential investors) is significantly diminished. It is not strong across any of the sectors; it is not what we would like and is well down on any other year."
Despite that he is satisfied that both Dundalk and Drogheda are in a good position to secure future investment.
The Minister for Social, Community and Family Affairs, Louth TD Mr Dermot Ahern, said he learnt of the news "with great regret. The north-east and Louth, in particular, have had bad rebuffs in the recent past and I can guarantee that all efforts will be made to try and redress the situation."
He spoke with the Tβnaiste, Ms Harney, about the situation and "we have agreed that particular attention must be paid to the area."