The decision to close the factory was taken after a consultation, which began in September, failed to find a viable solution to the company's troubles.

Communisis group human resources director Tony Commons said: "It's a shame. The general view of the union and the employees was that they fully understood that it's had a difficult time for a number of years.

"There was just an overall sad conclusion, which was in no way acrimonious, that there wasn't a means of it returning to be a viable business."

Commons blamed pricing pressures, due to overcapacity and the growth of imports in the label sector, for the demise of the plant.

The 90-day consultation period over the future of the plant began when the GPMU was called in two months ago.

Production at the plant, which produces labels for the packaging industry, will be phased out as contracts are passed to other printers. No work will be taken into other Communisis divisions.

Communisis Gateshead, which was previously named Waddingtons Labels, has had a troubled history. Last August industrial unrest hit the company following a dispute over pay.

Story by Josh Brooks