A packaging factory at Crewkerne in Somerset could be closed with the loss of 108 jobs.
Nampak Cartons said it was considering shutting its plant on the town's Blacknell Lane industrial estate.
The company is investing in "leading edge equipment" for its purpose-built factories in the UK and Europe and is looking to shut older facilities.
A further 17 administrative jobs may also go at Nampak's Gillingham site in Kent as part of the process.
A three-month consultation period with staff and unions has begun.
The company said its proposal would not result in a reduction in capacity, but a more efficient and streamlined operation with lower costs.
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