Intertape Polymer Group, a packaging products firm, said it would shift its shrink film production business to Tremonton in Utah from Truro in Nova Scotia.
Intertape is also planning to close its tape manufacturing facility in Richmond, Kentucky, by the end of 2012 that would affect 50 workers.
Intertape president and chief executive officer Greg Yull said the operational review was done.
"With this plant closure and transfer of production, we expect a positive contribution to (adjusted earnings before interest, taxes, depreciation and amortization) of more than $5 million in 2013 and approximately $6 million in each subsequent year." added Yull.
The overhaul will require about $5.5 m in capital expenditures, with annual expenditures for 2012 to grow to $23m.
Truro facility employs 300 workers, from which just 30 work on the shrink film lines.
