The tobacco company, PJ Carroll, has confirmed it has initiated a consultation process with trade unions and other employee representatives regarding a proposal to close the company's manufacturing plant in Co Louth.
The factory in Dundalk employs 66 people. A company spokeswoman said production at Dundalk has been in decline for some time and the factory is operating at only 45% of its capacity.
She said management were of the view the operation would not remain viable for the future.
The consultation process does not impact on the PJ Carroll sales, marketing and distribution operations which are based in Sandyford in Co Dublin.
