The Indorama PET factory in Workington is closing with the loss of 73 jobs.
Vice President of Corporate Communications Richard Jones told ITV Border that the facility would be mothballed.
No time scale has been agreed.
The company says an influx of cheaper materials from Asia is to blame for the decision.
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With 74 empty shops and businesses in the town centre, D&G council says it's going to spend a million pounds to bring visitors back.
Following Friday's vote to leave the European Union, businesses in the region are worried about how their export market will be affected.