The process, which will take place over the next 18 months, affects 150 Unite members at the banknote and security printer's sites.

Although the workforce will be offered the opportunity to relocate, Unite said it expected job losses among the sites from those unable to make the move.

Louisa Bull, Unite officer said the union will meet with De La Rue next week and be "working hard to get the best deal possible for our members facing redundancy".

She added Unite would also explore the company’s offer of relocation opportunities to other plants across the UK.

Unite cited the arrival of new chief executive Tim Cobbold and the group's plans to return to a £100m operating profit as possible factors behind the move.

"However today’s news will be a major shock for many [employees] and will have a significant adverse impact on many Unite members and their families," she said.

Bull acknowledged the positive in keeping the positions in the UK. "While recognising De La Rue’s continued commitment to UK jobs, our role now will be to secure the best terms we can for our members."

Elsewhere, US private equity firm Advent International has agreed to buy a 90% stake in french securtiy printer Oberthur's smart card and identity business. Oberthur could use the proceeds from the sale of a majority stake in its smart card business to finance a renewed bid for De La Rue analysts have claimed.