Around 145 employees are based at the web offset printing facility, which made a £3m pre-tax loss last year on turnover of £20.2m. The announcement was made at 7am this morning with a proposed closure date of 22 August.

The facility came under Walstead control last month, after it bought St Ives Web, a move that also included facilities in Peterborough and Roche.

Wyndeham Group chief operating officer Roy Kingston said: "Wyndeham Plymouth has been making losses for many years. We have reviewed a range of options to find an economic solution that would make this business viable.

"Any solution would have to quickly stem the losses and, importantly, show a realistic plan to achieve sustainable profits. So far, we have been unable to find a workable business model that meets these goals meaning the site will continue to generate substantial losses which we are not prepared to absorb."

Walstead plans to move work from Plymouth to the company's other facilities following the proposed closure.

Chief executive Paul Utting added: "We regret having to go through this process. However, it is symptomatic of the wider structural changes that are becoming increasingly necessary to ensure the diminishing UK web offset industry can continue to supply publishers and print buyers with a reliable service in the long term.

"Wyndeham is at the forefront of consolidating the sector and we intend to maintain our market-leading position. It is paramount that we match capacity with demand and that our clients’ work is produced on the most efficient equipment we have available.

"Unfortunately, with declining volumes compounded by spiralling raw material costs and market prices at an all time low, we have to restructure to remain viable. I anticipate there will be further initiatives of this type across the sector as all of our main competitors continue to make significant losses."