More than 100 staff have been threatened with redundancy at the 152-year-old Birmingham factory of a global engineering group.
IMI Components, part of the listed IMI group headquartered on Birmingham Business Park, is planning to close the site in Witton next year due to a downturn in orders from its largest customer there.
The factory makes components used in the nuclear energy sector but the company said the site, as with many across the world operating in this sector, had been affected by the Fukushima disaster three years ago.
The customer, which has not been identified, has told IMI Components it plans to wind down its work in the field of fuel enrichment from December 2014 therefore it will not be needing the components made in Witton.
IMI Components added that it had been unable to find alternative revenue streams of sufficient volume and value to counter the loss of this significant business.
Managing director Maurice Tunstall said: "It is extremely regrettable that we are faced with this situation however global events have had a very adverse effect on demand for our products. We will be doing all that we can to support affected employees."
A consultation is now under way with trade unions and the 108 staff based at the site.
A company spokesman added: "Throughout the consultation, one of the things the company will be trying to do is relocate those people within the group.
"IMI will be winding down operations there in the first half of 2015 with the closure likely to take place in June 2015."
The closure is likely to result in a £10 million restructuring charge for the company.
The plant was the vision of Scottish entrepreneur George Kynoch who opened a percussion cap factory in 1862 and by 1881 it had grown to become Britain's largest ammunition manufacturing company.
It was later renamed Nobel Industries, becoming a major supplier of carburettors and radiators, and was one of the four founders of Imperial Chemical Industries (ICI).
The Witton site was the head office and principal manufacturing base of ICI metals division.
The business then morphed into Imperial Metal Industries and IMI Components was registered as company in its own right in 1982.
Prudential bought the factory over a decade ago for £27 million and the head office functions of the IMI group were moved to Birmingham Business Park.
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