The company, which was created in January following the merger of AGI World and Shorewood Packaging, has confirmed that it is to begin consulting on the closure of the facility, which specialises in manufacturing paper and board-based packaging for the home entertainment industry.

Under its proposals, which the company said were being discussed due to the "softness" in the media packaging industry, all production would transfer to AGI-Shorewood’s two other UK plants in Slough and Swindon.

A statement issued by the company said: "The closure of Ebbw Vale facility would optimise the operations and resources of the business.

"The decision to consider the closure of the print facility in South Wales arises as a result of the softness in the media packaging industry causing the business to be loss-making.

"The employees at this facility are being fully consulted about this proposal and discussions will take place with everybody over the coming weeks. The company will provide help and assistance to everyone affected.

"The union representatives at Ebbw Vale are being fully involved in the discussions and any necessary redundancy programme which may arise should the closure go ahead."

The consultation is expected to end on the 24^th February.

AGI-Shorewood employs nearly 4,000 people worldwide and operates 24 manufacturing facilities in North America, Europe, Asia and Latin America. It also has five plastic injection-moulding operations in the US, UK, Germany and Poland.

Its core markets include consumer, media and entertainment and tobacco packaging, as well as beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary and specialty foods and specialty gravure.