Sonoco Products, which has operated a facility on Daisy Street in Chattanooga since 1981, is closing its doors.
Plant employees were told Tuesday about the decision to close the plant and move operations to other facilities that are not operating at capacity.
Some 30 employees are affected.
The closing is expected to take place in early July.
Roger Shrum, company spokesman, said, "That plant produced composite (paper-based) containers.
Unfortunately, we have seen a slowing of orders for that product in that region."
He said employees will be offered severance pay and placement services.
Mr. Shrum said it has not been decided if any of the equipment will be moved elsewhere.
The plant is off Dodson Avenue near the East Chattanooga Recreation Center. It was built by Sonoco.
Sonoco is a multi-billion dollar global provider of consumer packaging, industrial products, protective packaging and packaging supply chain services.
Headquarters is in Hartsville, S.C., and there are more than 340 operations in 34 countries.