One of the largest factories in the Wiltshire town of Melksham is to close at the end of December next year.
The closure of US-owned Cooper Tire & Rubber puts 350 jobs at risk.
"Our Melksham site has struggled to be competitive for some time," said HR director Gavin Champion, who said the firm would support affected employees.
Union leaders have reacted angrily, with Tony Hulbert from Unite said "the timing isn't great with mortgage rates going up and now potential job losses".
He added: "They [Cooper Tires} could have waited until the new year so we could get a picture of how 2023 was looking."
The town's MP, Michelle Donelan, has pledged to meet with representatives of the company to discuss their plans.
Speaking to BBC Wiltshire, the leader of Wiltshire Council, Richard Clewer said he was "very sad to hear the news."
"Cooper Tires has been part of the DNA of Melksham for over a century," he said.
"I'm not surprised to hear it, there has been ongoing uncertainty, but it is sad it has come to this."
"On a positive, there are a lot of employers around Melksham and they are looking for skilled workers," he added.
The firm's Melksham site has dwindled in recent years, with Cooper Tires announcing 300 job losses in 2019.
The firm says it has been hit with the rise in energy costs and increasing competition.
It will now enter into a consultation process with unions over closing the facility by the end of December 2023.
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