According to the manufacturer, the impact of the closure will lead to a €1.3m (£1.09m) improvement to its EBITDA from 2013.
Neschen has confirmed that its sales company, Neschen UK, is unaffected by the production closure and is actively looking for a new location for its sales and support functionality.
Stefan Zinn, board member of Neschen AG, said the trend towards "environmentally friendly" products had resulted in the plant making a loss for years.
"As a result of the technical advancements in water-based adhesives, we can no longer see any positive perspective for this production plant. This is why we have decided to close the plant by the end of 2012," he added.
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