About 100 jobs are at risk in Blackburn after wallpaper company Graham & Brown announced plans to close its manufacturing site on Harwood Street.
It is part of a proposal by the firm to increase investment in digital production at a new state-of-the-art, low carbon production site in Padiham.
The plan is in response to changing customer demand and a bid to reduce environmental impact, it said.
Graham & Brown has pledged to become net zero by 2030.
The company said there had been an increased demand for more sustainable home interiors products as customers and retailers became "more environmentally conscious".
The new digital printing site uses 100% renewable energy, solvent-free inks and sustainably-sourced paper, it said.
Chief executive Andrew Graham said: "The global wallcoverings market has been undergoing structural change for many years due to the growth of online retail and the category's contraction in physical retail, trends which have accelerated post-Covid."
He said due to "reducing demand for traditionally-manufactured products" and "rising production inefficiencies as a direct result", the manufacturing operation at India Mill was "no longer fit for purpose".
"Sadly this means we need to explore the difficult decision to close the operation," he said.
"What remains paramount is that we continue to support colleagues during what will be a personally unsettling period."
Graham & Brown was founded in Blackburn in 1946 and currently employs around 400 people, with approximately 325 based in the UK.
Its products, which are sold in over 75 countries, span wallpaper, paints, soft furnishings and home accessories.
A consultation process has started with workers to explore alternative jobs to avoid or reduce job losses.
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