Innovia Films has announced that is selling its cellophane business to the Japanese company Futamura Chemicals for 75m euro (£60m).

Around 470 employees worldwide, including at least 260 at Wigton, are expected to transfer to the new employer with their pay and conditions protected under Tupe legislation.

Innovia hopes to complete the deal by the end of June. It says the sale of its cellophane division will allow it to concentrate on its polypropylene film and polymer bank note business.

Chief Executive Mark Robertshaw said: “The sale of our cellophane business is an important strategic step for Innovia.

“Futamura is an excellent long-term owner for Cellophane, with its core business focused on cellulose and plastic films.

“In line with our strategy, we will continue to focus on building our polymer films and banknote business where we see significant growth potential.”