The business, an envelope manufacturing arm of the Mayer-Kuvert-network, will cease trading in three to four months time after it was concluded "there is no viable future for the plant."

The company had been trading at just over half its capacity following the loss of a major client with remaining production to be moved to the Bathgate factory in West Lothian.

Kevin Borgers, head of UK operations for Mayer-Kuvert, said that higher costs in raw materials, doubling of energy costs and "decreasing volumes in market demands have all conspired to turn the tide against our manufacturing operation in Dyce."

He added: "Losing a major customer was the final blow. This is a very difficult time for all of us. We are now focused on trying to help those unfortunate enough to be facing redundancy and will endeavor to help wherever possible."

In late 2006, the Aberdeen site was the centre of on-going strike action by a proportion of employees in protest over proposed shift changes.