The international packaging and paper group, headquartered in Vienna, has initiated a 45-day consultation over the proposed closure of the Scunthorpe plant, which produces food and non-food flexo packaging.

The site, on the Foxhill Industrial Estate, employs 79 workers, 72 of whom would likely lose their jobs, according to a statement from Mondi. A consultation period is now taking place, with the likely result being the site's shut down by Q4 of 2018.

Mondi Consumer Goods Packaging UK managing director Allan Lock said in a statement: “We have rigorously explored all options for the plant’s future. Our conclusions show that the only viable way forward is unfortunately to cease production at Scunthorpe.

“We understand that this will be a challenging time for employees and their families and we are committed to treating employees fairly throughout the process.”

Mondi declined to comment further.

Last summer, 48 jobs were cut at the Scunthorpe site, with part of the factory’s work transferred to Mondi’s Deeside plant as a result.

It is unknown whether equipment would be sold on or transferred to another Mondi plant in the event of a shutdown. The group also has production facilities in Nelson, Lancashire and Deeside.

North Lincolnshire Council has since announced that it will step in to support any staff affected if the closure goes forward.

Council leader Rob Waltham told the Scunthorpe Telegraph: “We always set up a task force when we have got major employment changes and we will do the same here. We will do all we can to support anyone who is affected, and we will work with the business to make sure they can exit the site and try to support a new business to go there.”

Initiatives put in place by the council will include running jobs fairs and assisting with the re-skilling or re-employment of affected workers.