Luxembourg-based printing and packaging supplier Flint Group is reportedly contemplating plans to shut down its Dundee facility in Scotland, a move that could cut close to117 jobs.
The facility is hit by significant and worsening losses due to deterioration of the printing industry, media sources reported citing the company.
The operations from the Transfer Media factory, which produces materials for customers across Europe, would be shifted to the company's factories in the US, BBC reported.
Flint Group Dundee site operations manager David Wood was quoted by The Scotsman as saying: "The structural changes in the marketplace are clearly irreversible and demand for our products is falling fast as digital innovations continue to drive people away from print media.
"When these market trends are combined with a site financial operating loss in 2015 of over £1 million, regretfully it is clear that we must address this excess capacity."
Flint would conduct a 45-day consultation process with staff over the proposed closure.
Flint Europe print media vice president and general manager Tony Lord said: "Communication and consultation with our employees and their representatives will now be a key priority during this difficult time. A further announcement will be made at the end of the consultation period.
"We want to reassure our customers that despite the current consultation period about to start in Dundee, our supply chain will continue to run as normal and there will be no negative impact on existing or new orders. We remain totally committed to delivering first-class products within our standard European lead times."
In December last year, Flint Group acquired Xeikon, a digital solutions provider to the packaging and commercial printing markets.
Flint has created a new business unit called Flint Group Digital Printing Solutions, which will absorb Xeikon's product line.