Tobacco company PJ Carroll has confirmed that it has begun consulting trade unions and other employee representatives about closing 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 currently operating at only 45% of its capacity. She said management were of the view that the operation would not remain viable for the future.
The factory's owner, cigarette giant British American Tobacco, also said in a statement that volumes in Ireland had been affected by increases in excise tax on cigarettes as well as the smoking ban in public places.
BAT also announced plans to shut a factory in Southampton in England as well as the plant in Dundalk. Allan Short, head of BAT's Britain and Ireland operations blamed higher costs in western Europe as a major reason for the eventual closures.
