Some 45 jobs are to be lost in Ghaoth Dobhair, Co Donegal, with the closure of Ireland's largest bus manufacturers.
Euró Iompú Teoranta has been assembling buses and coaches in Donegal since 1985.
The company's board of directors informed its employees this afternoon that the company is to cease all business activities with immediate effect.
The company has been placed voluntary liquidation.
In a statement, the board said the decision had been reached after the directors of the company conducted a thorough and detailed review of business activities.
The board said it was left with no alternative but to begin the liquidation process.
It said the decision hinged on increased competition in the bus manufacturing sector in the last few years, which had a considerable impact on the company's competitiveness in the market.
Euró Iompú produced a wide range of coaches for the Irish and European Markets including coach built vehicles, school buses, coach/bus conversions and special purpose vehicles.
