Arcotronics, based in Burcote Road, Towcester, produces capacitors for the aerospace industry and the military. It currently employs 64 full-time and up to 30 temporary staff.

The factory will close after a decision was made by new owners Kemet to consolidate the business and move it overseas.

Manufacturing manager Mike Dawson, who has worked for Arcotronics for 39 years, said: "Since the news was announced the mood has been quite depressed. It is a very profitable company but this year it has been bought and sold and moved out of the country."

Part of the manufacturing will be moved to a premises in Lodge Farm Industrial Estate in Northampton but the majority of the work has been outsourced to Matamoros in Mexico.

The director of corporate and investor communications for Kemet, Dean Dimke, said: "When Kemet bought Arcotronics we knew there would be consolidation of our operations.

But one of the important things we want to stress is that the closure of this plant in Towcester is in no way a reflection of the fine work they have done over many years.

"It is just a reality that we have plants around the world that were capable of consolidating the work done in Towcester."

Mr Dawson said a small percentage of staff had been offered jobs at the Northampton site, but many others had been made redundant.