St Ives announced the proposed closure of the plant in February, and entered into a 90-day consultation process. Attempts by the union and workforce over the past few weeks to come up with a rescue package proved unsuccessful.

Caerphilly was loss-making and its reliance on long-run work was proving problematic even before the advent of the new UK gravure plants.

St Ives Web managing director David Emeny said: "The consensus was that there is no prospect of taking it forward profitably. The workforce tried to come up with a solution, but you can't change the marketplace and the market is not in a situation where we can fill the place with suitable work."

Amicus GPMS assistant general secretary Tony Burke described the news as "bleak". "We did all that we possibly could to come up with a package. But with the difficulties the company found itself in, it was impossible to put something together that would save it. It's very disappointing. It's a bleak day for printing and a bleak day for manufacturing in Wales," he said.

There will be a phased run down of production over the next two months, and it is anticipated that most of the work will be transferred by the end of June.

Emeny said that contract customers, which include Emap and IPC, had agreed the movement of titles to other St Ives sites. "We have contingencies in place and every customer knows what we are planning to do."

Caerphilly employs around 210 staff. The redundancy and closure costs are included in the 13m charge announced by St Ives in February along with the proposals.

A handful of staff will transfer to other plants, and it appears likely that general manager Katy Bonnor will remain with the group.

Story by Jo Francis