The move will affect 50 jobs and has been made to reduce costs. The plant will close in late March, when the new Eastern European unit will become operational.
The Hatfield litho plant manufactures greetings cards and tags. The Latvian transfer's exceptional one-off costs are in the region of 700,000.
"We are confident that this lower cost base will not only enable us to add value to existing products but will provide a platform for further growth into Europe," said International Greetings chief executive Nick Fisher.
The Hatfield plant accounted for 8% of the group's turnover. Its main factory in Hengoed, South Wales produces wrapping paper, decorations, bows, ribbons and Christmas crackers.
News of the closure comes as International Greetings announced its interim results. In the first half of the year pre-tax profit grew by 17% to 6.3m while turnover was up 16% to 61.8m.
