Bausch & Lomb (B&L) plans to move contact lens production away from its Livingston plant in Scotland, a decision that will result in around 500 job losses.
The contact lens manufacturer, which has entered into a 90-day consultation period with staff, said the closure was in line with the company's plans to move production to Waterford in Ireland and the US.
The phased withdrawal from the facility will happen in 2010 and early 2011.
The announcement has prompted the Scottish government to seek talks with the company in a bid to save jobs.
In a statement, Scottish finance minister, John Swinney, said: 'The Scottish government has been in contact with the company at senior level, including the chief executive Gerald M Ostrov. A phased withdrawal from Livingston over the next 21 months allows us to continue discussions with the company. He added: 'We will work intensively with B&L to explore further possibilities for the site.'
A B&L statement confirmed that it had been in 'discussions' regarding the matter during the past several weeks, and that the company will continue these discussions during the consultation period.
Commenting on the decision to withdraw from the Livingston facility, Ostrov said: 'Considering our growth plans in the coming years, we believe it's better to focus our resources and attention on just two primary contact lens plants, freeing cash for reinvestment into the business.
'We recognise the significant impact to our Livingston employees, their families and the community, and note this is by no means a reflection on our employees' professionalism, dedication, or efforts. We will do everything within our ability to ensure that their needs and concerns are listened to with the utmost respect.'
He added: 'It became very clear to our senior leadership team - following our detailed analysis - that company-owned sites in Rochester and Waterford held a strong advantage in most major assessment criteria. The long-term cost savings alone are hundreds of millions of dollars.'
Meanwhile, daysoft founder, Ron Hamilton, who set up and sold the Livingston-based plant to B&L for £20m in 1996, issued a statement reacting to the news of the closure.
'I am very sorry for the individuals involved,' he said. 'Unfortunately B&L are not the only major struggling because distribution costs have become so high that they are forced to make cut backs in their manufacturing base.'