Mapa Spontex has begun consultations with ten employees at the company's warehouse and offices in Halesfield, Telford, over its proposal to close the site by the end of 2005.
It plans to transfer the warehousing to another facility, while the administration will go to the Worcester office. Mapa Spontex UK managing director Ralph Shallcross said: "We regret that we have felt it necessary, but to remain competitive we must use our resources to maximum effect."
He said he hopes as many people as possible are able to transfer to a central warehouse facility, the company's office in Worcester or other companies within the group.
"For those who are unable to transfer we will pay enhanced severance terms and we will aim to help those looking for alternative employment," he said.