British Polythene Industries (BPI) said it will cease production at its packaging films facility in Brampton, Cumbria, England.
BPI said the facility, which was earmarked for closure in January, will be closed in April instead.
Production of shrink-wrap and stretch films for pallets of the unit will be moved to other BPI facilities, the company said.
The closure is predicted to cost the packaging company £600,000 and could affect up to 40 jobs.
In 2009, the Brampton factory reported a loss of £500,000.
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