The 25m-turnover company has made an aggregate pre-tax loss of around 10m over the last five years.

Teich Flexibles (UK) finance and administrative director John Moore attributed the problems to the strength of sterling, increased competition from European packaging companies and the Environmental Protection Act.

"The workforce here is fantastic and very skilled but we just cant compete," said Moore. "We will make sure that we do the right thing for our customers, but also for our staff members."

The plants work for Unilever and Nestl will transfer to its sister plant in Dundee. The company hopes to retain a sales and administration centre in the Derby area staffed by 20.