In a letter to staff, the firm said that the the facility, which has been in operation since 2006, will shut down when current demands are met around the end of July.
The contractor blamed the decision to close on economic challenges currently being experienced throughout the energy from waste and oil and gas industries.
Interserve revealed difficulties with three loss-making energy jobs back in February. Last week the firm warned that it expected to take a £70m hit at its construction division due to problems on its Glasgow waste to energy contract.
The £154m project for client Viridor is months behind schedule and has been dogged by a series of subcontractor issues.
An Interserve spokesperson said: “All employees impacted by the closure are being consulted with. We have also advised all employees that we have had interest from a company which is presently searching for a manufacturing facility in this sector.
“We are in discussions with this business and hope that we may be able to avoid redundancies. Wherever possible we will seek to mitigate the impact on employees by offering suitable alternative employment within Interserve or elsewhere.”
He added: “The closure will have no impact on our ability to support our customers.”