A local councillor has raised concerns about the Modern Homes Ireland factory in Ballyjamesduff.
Cllr Trevor Smith has said the MHI factory is closing with immediate effect.
He told Northern Sound this evening, that staff were informed of the decision today.
Cllr Smith believes the factory had been downgrading for some time, but it is still a shock.
According to the councillor, MHI has been open in Ballyjamesduff for 10 years.
In 2019, BAM, the construction company that is involved in the construction of the National Children’s Hospital, became involved with MHI.
Northern Sound has been in contact with BAM for comment.
Cllr Smith noted that staff said they would be paid redundancies in due course.
He said: "It's a big blow to Ballyjamesduff. You would be devastated for the workers, and their families.
"We have many young workers that have young families, and mortgages to pay. Definitely, it's a huge blow to the workers on the site in Ballyjamesduff," he added.