Technicolour Home Entertainment is to close in Youghal in Co Cork with the loss of 243 jobs. The company produces compact recordable disks.
It is based in a 120,000 square foot facility in the town, and was recently bought from the US-based Eastman Kodak company.
Youghal lost its other big employer at Christmas, when Artesyn announced it was to close with the loss of 160 jobs.
Technicolour is a subsidiary of french media giant Thomson. It makes DVDs for international clients such as Disney and Warner Brothers and the Youghal plant will close by the end of March.
The company's Irish General Manager, Dr Paul Smith, said the decision was taken for geographic reasons as well as for financial ones. Manufacturing would now move to the company's other plants in Poland and in Wales.