The 60-year-old man, who was from Ebbw Vale, Wales, has been named as Gareth Young, an employee of the company.
Gwent Police said it was notified of an incident at the unit on Newbridge Industrial Estate in Gwent, on 4 August.
A joint investigation with the Health and Safety Executive (HSE) has now been launched to establish the circumstances of his death.
A spokesman for Moulded Paper, which manufactures pulp paper packaging from recycled paper pulp, said: "Gareth was a long-standing and highly respected employee.
"We are deeply shocked and saddened by his death and he will be missed by all. Our thoughts and sympathies are with his family."
The spokesman added that, in the circumstances, it would be inappropriate for the company to comment on the investigation.
A post mortem is due to take place over the next few days.
The news follows a number of incidents in the paper manufacturing industry over the past year, including the death of an employee at Arjowiggins' Ivybridge paper mill in Devon.