An engineering firm which employs 27 people in Limavady has gone into administration.
The Limavady Gear Company is based at the former Seagate factory in the town where several employees also worked.
A significant number of redundancies will be made, according to the company's administrators.
The firm specialises in precision engineering and manufacturing for heavy industry.
In a statement administrators, Cavanagh Kelly of Dungannon, said they were assessing the options.
The administrators said they were prepared to trade for a period to see if the business could be sold as a going concern.
"A significant number of redundancies will be made initially as the Administrator concentrates on completing the orders in hand," the statement said.
The East Londonderry MP Gregory Campbell said he had been in contact with Invest Northern Ireland and the Enterprise Minister Arlene Foster to see whether the company could be saved.
"If there isn't a package put in place, " he said, "we have to make sure that the best possible redundancy is put in place for the employees."