It's understood that over 100 jobs are to go at Aptar in Ballinalsoe.
The plastics technology company has been based in the town for the last 20 years.
It is a subsidiary of a French manufacturing company, which is a leading global supplier of pumps and dispensers for the pharmaceutical, perfumery and cosmetic industries.
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Workers at the company were called to a meeting this afternoon and told of plans to wind up operations in September.
