Wood panel producer Sonae Industria is to close its waste wood chipboard facility in Knowsley, Merseyside.
Prior to a fire in June 2011, the facility was processing around 400,000 tonnes of wood waste per year.
However, planning delays to re-build the factory and local opposition to the facility following a number of incidents there has led to its closure.
In a statement, Sonae Industria said: “Sonae Industria announces that its indirect affiliated company Sonae Industria (UK) Ltd will close its operations in Knowsley, Merseyside following in-depth consultation with employees and trade union representatives.
“The decision is the result of long delays to the reconstruction of the factory due to political and licensing difficulties and the reduced and unsustainable capacity levels that have ensued.
“Therefore, as from today, no further manufacturing will take place at the plant and almost all the workforce will leave the company.
“It is Sonae Industria’s intention to continue supplying the UK market from its other plants throughout Europe.”