More than 200 people will lose their jobs, following a layoff announcement at the Shorewood packaging plant in Brockville, Ont.
The company, which manufactures carton and folding paper products for the tobacco industry, says it will close the plant with a series of layoffs by the end of this year.
The company says the plant in Smiths Falls, Ont., however, will remain open following some restructuring.
Brockville Mayor David Henderson told CTV News the layoff announcement is a "psychological hit" to the city.
Henderson says the city will have to reinvent itself as it prepares to deal with the job losses.
Brockville is currently investing millions of dollars in projects to create jobs in the city. Those projects include a new aquarium and developing the city's waterfront.
With files from The Canadian Press
