Independent TD Michael Healy-Rae has said work needs to be done to attract employers to Co Kerry after 25 jobs were lost in Kenmare.
Deputy Healy-Rae said the job losses at the fish processing factory Kenmare Select were a "devastating blow" to the area.
The plant had been in operation for 20 years and was especially well known for its smoked salmon. Management blamed difficult trading conditions for the decision to close.
Staff were informed of the decision at a meeting yesterday morning.
Mr Healy-Rae said: "We have to work together to try to ensure some other employer or business can be brought into the locality to take the place of this excellent business that has provided and excellent product around Ireland and Europe. A lot of their product was for export."