The state forestry company, Coillte, has sold its share in its Austrian joint venture, which will result in the loss of 32 jobs.
Coillte's 70% stake in Griffner Coillte, which designs and manufactures buildings made from timber, was sold to the other partner in the venture, GriffnerHaus.
Financial details of the transaction are not being disclosed.
Sales and construction will be maintained in Ireland while manufacturing will be relocated to the GriffnerHaus plant in Austria.
This will result in 32 redundancies at the company, with staff numbers are reduced to 9, a statement said today.
The company will now enter into the statutory consultation with staff in relation to redundancy arrangements, it said.
Under the terms of the deal, the Austrian company will acquire 100% ownership of the business and will continue to serve its Irish customers under the new name of GriffnerHaus Ireland.
Gerry Britchfield, MD of Coillte Enterprise said: "We have been conducting a strategic review of all our businesses and took the decision that the manufacture and construction of timber frame houses is not a core part of the future of Coillte'.
