More than 200 staff at Kimberly Clark's Ingleburn Mill have been told they will lose their jobs when the plant closes its doors in July.
Staff learned of the decision to shut the factory after being summoned to an 11am meeting with management this morning.
All operations at the plant, which produces Huggies nappies, have ceased for 24 hours while staff absorb the news.
"At this time our focus is on the well-being of employees and their families, and providing them with the support they need now and in the months ahead," Doug Cunningham, Managing Director, Kimberly-Clark Australia and New Zealand, said in a media statement sent to the Advertiser.
"All affected employees who leave Kimberly-Clark will be paid their full legal entitlements and redundancy pay, which is above the national redundancy provisions.
"In addition, outplacement assistance and counselling will be provided."
Mr Cunningham said the factory was being closed as part of the company's Global Restructuring Program.
"Going forward, production will move to Kimberly-Clark's facilities in Asia, enabling faster access to the latest research and engineering advancements in nappies and pants," Mr Cunningham said.
An employee who spoke to The Advertiser after the staff meeting said he and his colleagues were angry with Kimberly Clark.
"It's a disgrace and shouldn't be allowed," he said. "This product is going to be made off-shore and then shipped back here to be sold."
"What about Australian workers, what about our manufacturing industry?"
The worker, who declined to be named, said receiving entitlements did not compare to "having a job".
"Some people are nearing retirement age but most aren't," he said.
"There are people here who have just bought brand new houses and cars who don't know what they are going to do."
"Jobless figures in Campbelltown are about to go up."
The Construction Forestry Maritime Mining and Energy Union, which represents Kimberly Clark's production employees, has called on the company to rethink its closure decision.
"It's a cruel decision, Kimberly Clark is a corporate giant and can do better," a union spokesperson said.
"It has chosen not to invest in workers and Australian families."
Campbelltown MP Greg Warren described the impending closure as "disastrous news".
"220 jobs axed from one workplace is an enormous loss for our local workforce," he said.
"If this doesn't make the state government wake up and realise they actually need to be proactive in creating jobs in our region, then nothing ever will.
"Local jobs are just as important as houses - that is something this state government refuses to acknowledge.
"In light of these 220 job losses, I urge the region's newly elected state Liberal MPs - Wollondilly MP Nathaniel Smith and Camden MP Peter Sidgreaves - to demand the Premier formulate an urgent and detailed plan to boost jobs in our rapidly expanding region."
Kimberly-Clark will continue to locally manufacture Kleenex, VIVA and Kimberly-Clark Professional products at its Millicent Mill in South Australia.