Sinn Féin Deputy Cathy Bennett has called on the government to support Monaghan town through seeking a new agricultural food business to invest in the area.
The Cavan-Monaghan TD said that the town is "feeling a huge loss" following the closure of the Lakeland Dairies plant at the edge of the town this week.
The closure marks the beginning of the co-op's plan to cut overhead expenses by closing three facilities.
The closures will be carried out against what the co-op said is “the backdrop of evolving environmental realities and regulatory direction from a milk supply perspective”.
A major development project will now commence at Lakeland Dairies Killeshandra to process liquid milk there, and a process to sell the Monaghan site will take place.
Deputy Bennett described the day of the closure as a "dark day" and "a loss for the town", with the site in operation for about 125 years, employing generations of local people.
"It would be a shame to have such a large site vacant and available on the edge of the town when it could be in use. It will also be a big loss having all those jobs moved away from the town," Deputy Bennett said.
The deputy said that she will, along with the help of Sinn Féin Deputy Matt Carthy, continue to "lobby" the government on possible investment.
"We're always trying to get the government to encourage smaller businesses to become bigger, and now could be an opportunity for them to do that, and make more employment in Monaghan town," Deputy Bennett said.
The TDs plan on approaching Minister for Enterprise, Tourism and Employment, Peter Burke on the issue.