The independent gift, loyalty, and membership cards supplier was acquired from Longacre Group by Woodberry Packaging earlier this year.
In July, Woodberry Packaging followed this with the acquisition of Precision Card Services (PCS).
Mark Kerridge, chairman of Woodberry Packaging Group, said: “Having acquired Incodia International Limited back in February 2023, with the aim of creating a market leading card business with sales and profit growth, it is with regret that despite its best efforts, we have found ourselves in a position whereby the Colchester manufacturing site does not deliver sufficient profitability to the group.
“Naturally we are saddened to be consulting with colleagues regarding the potential closure of our Colchester site, but I would like to reiterate that no decisions have yet been made.”
The consultation began yesterday (4 December).
Formerly CPI Card Group UK, Incodia was established in 1979 and has a second site in Skelmersdale, Lancashire.
The consultation process, which solely covers the Colchester site, is expected to take at least 30 days to complete, and during this time Woodberry will explore any other feasible alternatives to closure.
All other Woodberry Packaging owned sites and companies will continue to operate as normal and the group said it remains profitable.
“During this period, Incodia International will continue to provide its customers with products and services as normal and without interruption,” it further stated.
The Colchester site currently employs 49 people and offers B1 litho and screen print as well as a wide range of finishing services. Incodia International had sales of just under £13m last year.
Woodberry Packaging is a subsidiary of Woodberry Capital, a private investment firm set up by former Americk Packaging owner Patrick Doran.