CarnaudMetalbox Closures in Poole is making 64 of its 250 employees redundant. In a statement the company said that the action had been forced primarily by the continued strength of the pound.
It said: "The business has been forced to reduce costs mainly because of the strong pound, which has significantly affected profitability and volume over the last few years."
Human resources manager Mike Jay said that consultations between the company and representatives from the workforce and union had been completed. He added: "The redundancy terms are in excess of the state minimum." No-one from the Wessex branch of the GPMU was available for comment.
The factory currently manufactures 30m metal vacuum closures for glass jars per week. However, Jay said that the redundancies would decrease production in line with demand.
The factory has been located in Poole for 60 years. French group CarnaudMetalbox was acquired by US-based Crown Cork & Seal in 1996. Crown Cork & Seal operates 227 plants in 51 countries, and its European division alone encompasses 116 factories with a combined turnover of 2.36bn.