Largo Foods, the company behind the Tayto brand, has announced that it will close its production facility in Gweedore, Co Donegal, with the loss of 140 jobs.

The company, founded by Ray Coyle, will consolidate all its Irish operations to its main plant in Ashbourne, Co Meath, as the company seeks to reduce costs.

In 1996, Largo Foods purchased the Sam Spudz brand when it acquired Irish Snack Foods, based in Donegal. The Donegal plant was dedicated to the manufacture of extruded and fried snack products, while the Ashbourne plant focused on potato crisp manufacturing. Largo foods purchased the Tayto brand from C&C for €68m in 2006. In 2010, it invested €11m in Tayto Park, outside Ashbourne.

Largo Foods employs 360 people at the Ashbourne plant, where it uses 30,000 tonnes of potatoes each year – or 10% of the national crop.