Eastman Chemical Company has announced plans to close its acetate tow manufacturing site in Cumbria.
The New York Stock Exchange-listed company told investors that production at the Workington site would cease in April 2015 with site closure completed in the third quarter of 2015.
The Workington plant has 24,000 tonnes of acetate tow manufacturing capacity. Acetate tow is a fibrous material used to make cigarette filter rods.
Projected savings from the closure include annual operating costs of approximately $20m (£13.4m) and a total of approximately £13.4m of infrastructure capital expenditures planned for the next five years.
The closure will result in shut-down costs and restructuring charges totalling approximately £66.9m primarily in the first half of 2015.
"With changes in global market demand and recent and announced global acetate tow manufacturing capacity additions, we need less capacity to supply our customers," said Linda Hensley, vice president and general manager of the Fibers segment.
"We have been working with our customers throughout this process and remain committed to reliably supplying them with top-quality products."
Eastman Chemical Company is headquartered in Kingsport, Tennessee.