Combilift has suspended production for a three-week period in an effort to reduce the number of employees on its site.
The decision was last Friday and will allow 97% of its employees to self-isolate at home.
In a statement, Combilift said it could have remained open in line with the essential services defined by the government.
However, Managing Director of Combilift, Martin McVicar, said the decision was made in the best interests of the health of employees and that the decision followed an unprecedented drop in global demand and disruptions in the supply chain.
The Monaghan company will continue to pay a portion of all employee wages through the regular payroll for the three week period during which production is suspended.
Combilift has also applied to the Revenue for the Temporary Wage Subsidy scheme in support of this measure.
During the closedown period, Combilift will continue to provide customer support.
Less than 3% of its workforce will continue to work on site in support roles over this period, such as spare parts and technical sales.
Managing Director Martin McVicar encouraged employees to comply with the advice from the government and health authorities to remain at home.