The Flexotecnica facility at Tavazzano south of Milan will remain open, and will focus on design and development and sales and service for Italy.
However, a “mid-double-digit” number of jobs will go in Italy as a result.
Board spokesman Dr Andreas Pleßke said the Germany-headquartered manufacturer had “carefully examined all options to preserve as many jobs as possible in Tavazzano”.
“Responsibility for the entire site makes the relocation of assembly unavoidable. Bundling assembly within the group makes the site more efficient and profitable and thus secures jobs in the long term,” he stated.
“Core functions such as construction and development, service and sales for Italy will be retained and also strengthened as required.”
Some 1,600 employees work at the Würzburg site.
K&B said the pandemic had resulted in increased demand for film-wrapped food, while growth in e-commerce had fuelled the use of weight-saving flexible packaging.
Board member Christoph Müller said the group planned to further expand its market share in flexible packaging, and would leverage its global sales and service network to do so.
“The cooperation between the various business units at Koenig & Bauer has already proven its worth,” he added.
K&B acquired Flexotecnica nine years ago.