Amcor Tobacco Packaging is all set to shut down its US manufacturing facility in Danville and is expected to lay off about 35 employees.

Including the Danville location, Amcor operates four manufacturing plants in the US along with Richmond, Reidsville and Atlanta operations.

The plant, which manufactures boxes and cartons for tobacco products and chewing gum, is set to cease production in June and close by August 2013 completely.

Amcor vice president and general manager Marcus Hilty said in a release that there is a decline of 40% in the demand for tobacco packaging in the last 16 years.

"Despite these efforts, the business is not able to sustain four tobacco packaging production plants within the region," Hilty said.

Australia-based Amcor purchased the Danville plant in February 2013.