A cellophane factory in Bridgwater, Somerset, is to close in the next two months, with the loss of 250 jobs.
Around 250 jobs are to go at the plant
Innovia Films says capacity at its other two plants in the UK and America is sufficient to meet demand.
US authorities have previously been criticised for offering incentives to Innovia's loss-making plant in Kansas.
David Beeby, chief executive of Innovia, said: "We very much regret the impact on the employees and the Bridgwater area."
He added: "Cellophane has been fighting alternative products and technologies for over 30 years.
"There is a strong residual market for the material but there simply is not sufficient business to justify our operation of three production plants."
The Bridgwater Cellophane plant, which makes a profit, was opened by British Cellophane in 1937 and acquired by UCB Films (now Innovia Films) in 1996.
Ian Liddell-Grainger, Tory MP for Bridgwater, told BBC News: "This plant has a second to none productivity record.
"It is a very sad day."
A spokeswoman for the South West of England Regional Development Agency (SWRDA) said the agency was "extremely disappointed" at the announcement.
"The SWRDA is continuing to work with representatives from the unions and partner organisations in Somerset to put in place a package of measures to help those affected by the closure," she said.