Rakon Lincoln will close its city facility in order to move operations abroad, cutting 85 jobs in the process.
After consulting with Rakon UK Limited employee representatives, the Rakon Board of Directors confirmed its decision to close Sadler Road plant.
In January, a consultation period was in place to see if it was viable to close the Lincoln plant in order to move operations to New Zealand.
Those with jobs at risk will now go into an individual consultation, which will determine the timeline for the closure.
The board chose to close the UK factory due to the duplicate structures and manufacturing capabilities in its New Zealand plant.
Additionally, the company stated the closure is due to finances being “not where we want them to be.”
Rakon is expecting a loss of $54 million in its 2014 financial year, ending on March 31.
Rakon will continue to maintain a research and development centre in Harlow.