The collapse of Waterford Wedgwood hit the Irish city that shares the name like a bombshell. Jack Walsh, the city’s mayor, described himself as “very shocked, it’s very grim”.

Mr Walsh said the scale of the disaster for Waterford, which is synonymous with its world famous Waterford Crystal, was unparalleled. Glass, or crystal, has been manufactured in Ireland’s fifth largest city since 1783.

“It goes beyond the jobs for the city, it has huge implications right across the hospitality industry,” said Mr Walsh.

“Over 300,000 visitors come to Waterford every year – that’s a huge attraction for Waterford. This is a national disaster.”

The heritage and branding which ties the city to Waterford Crystal is no better exemplified than by the crystal ball used to count down to the New Year in New York’s Times Square every year.

Unions were seeking an urgent meeting with management yesterday morning in a bid to save 800 jobs at Waterford Crystal. Jimmy Kelly of the Unite union said:”The brand has been built up since practically the foundation of the state.

“It’s vital that these jobs are saved for Waterford.”

The impact of the announcement was barely mitigated by the long-standing cloud hanging over Waterford Wedgwood’s fortunes. Waterford Crystal closed for several weeks last year and laid off hundreds of workers as a cost-cutting measure.

The announcement foreshadows even grimmer economic news for Ireland which became the first European country to fall into recession. Dell, the computer maker, is expected to announce that it is closing its manufacturing plant in Limerick, with the loss of up to 2,000 jobs.

Dell is one of the largest employers in Ireland’s Midwest region and its facility in Limerick is the company’s largest manufacturing plant outside the US.

Last month, the Tanaiste Mary Coughlan and the defence minister Willie O’Dea, who is also TD for Limerick, flew to Texas to plead with Michael Dell not to close the plant.

But the Dublin Sunday Business Post reported at the weekend that nothing has emerged from talk of rescue plans and large-scale layoffs are expected to be announced as early as this week.

Dell’s decision to move production to Lodz in Poland and to the Far East will be a blow to Ireland’s image as a high-tech production centre for Europe, although the possibility remains that the company will retain a research and development facility in the country.

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