Cork company Hormann Electronics has been put into receivership.
The company, based at the Mahon Industrial Park in the city, currently employs 120 people.
Director and Quality Control Manager Denis O'Mullane confirmed this afternoon that a receiver was appointed earlier today.
The company will continue to trade for now, and the intention is to try to sell the company as a going concern.
Mr O'Mullane said the main factor leading to the appointment of a receiver was competition from Eastern Europe and the Far East.
Set up in Cork in 1977, the company assembles and tests printed circuit boards. It underwent a management buy-out in 2005, after which it embarked on a €2.5m capital investment programme to adapt its manufacturing processes to suit new markets.
