"With any significant export opportunity restricted by Australian government regulations, our Moorabbin factory is significantly underutilised, operating at less than half of its currently installed capacity," said Mr Gledhill.

"Regrettably, factors beyond our control prevent us from fully utilising the facility, and accordingly it's been identified for closure."

In 2012, Australia became the first country in the world to introduce "plain packs", which bans all company logos and colours from packets, which must instead display graphic health warnings.