INNOVIA Films is planning to concentrate on its polypropylene films business.

The assurance comes following the recent announcement that it is selling its cellophane films division.

The 75m euro (£60m) deal with Futamura Chemical will see around 270 of the 900-strong workforce at Innovia's Wigton HQ transfer to the Japanese company, with their pay and conditions protected under European TUPE regulations.

Innovia says there are no plans for redundancies.

Cellophane is derived from wood pulp and is used primarily as packaging for foodstuffs such as sweets, tea bags and crisps.

However, demand has weakened as other packaging materials have emerged and Wigton is the last surviving cellophane manufacturing site in Europe.

Futamura is Japan's leading manufacturer of food packaging films, and is second in the world in terms of market share in cellulose films.

It had sales of 67.1bn Yen (£0.44bn) in 2014.

Innovia's cellophane business will give it manufacturing centres in Europe and the US, markets that Futamura is keen to develop.

Company president Yasuo Nagae said: “The acquisition will enhance our product range and presence across the globe.

“It supports our ambition to serve our key customers through local manufacturing facilities offering the highest standards of delivery by experienced personnel.

“We look forward to welcoming Innovia’s cello employees into our family.” 

The deal with Innovia's private-equity owner, Arle Capital Partners, should be completed by the end of June.

Innovia's cellophane business has survived largely because the company has developed successful niche products such as NatureFlex, a biodegradable and compostable cellulose-based film for fresh food.

It is naturally permeable, allowing moisture to escape, while providing a barrier to contamination from outside.

Its ability to degrade naturally attracts customers of organic and ethical products. The most innovative use of NatureFlex, however, is in a chemical protection fabric, Lantex 300, made by Kappler in the US.

The sale of the cellophane division will allow Innovia to concentrate on polypropylene films including banknotes, where it is the world leader.

It has invested £40m at Wigton in recent years to boost output of polypropylene film and build an opacification plant to coat the base material for the Bank of England's first polymer bank notes.

The £5 note is due to go into circulation in September followed by a £10 note next year.

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.”