Graphic Packaging International will shut its paperboard factory in Santa Clara, a move that will slash 120 jobs, the company announced Wednesday.

KapStone Container has decided to cease operations at its Oakland factory at 8511 Blaine St., a short distance from the corner of San Leandro Street and 85th Avenue. The Kapstone closure will eliminate 67 jobs, according to an official company filing with state labor agencies.

The separate shutdowns are a reminder that the high cost of doing business in the Bay Area, a region besieged by skyrocketing housing prices and choked by traffic jams, can influence corporate decisions regarding efficient industrial operations.

Atlanta-based Graphic Packing Holding, which owns Graphic Packaging International, announced the shutdown of the Santa Clara factory, located at 2600 De La Cruz Blvd.

“The closing of the Santa Clara facility was a difficult decision,” said Michael Doss, president and chief executive officer of Atlanta-based Graphic Packaging Holding.

“We are working closely with the affected employees to provide support and assistance,” Doss said of the Santa Clara closure.

Graphic Packaging manufactures an array of paper-based packaging products for food, beverage and other consumer product companies. The company also makes folding cartons and paperboard.

The company intends to shift operations to numerous other facilities once its Santa Clara factory goes out of business. The shutdown is expected to occur by year’s end, Graphic Packaging said.

Graphic Packaging indicated that the cost of operating the Santa Clara factory was greater than at least some of its other locations.

“Following the closure, we expect to meet our external and internal paperboard commitments previously serviced by our Santa Clara mill by redistributing production across our lower-cost Midwest coated recycled mills,” Doss said.

The KapStone Container shutdown was signaled in both a filing with the state Employment Development Department as well as a management discussion of recent earnings results.

Workers at KapStone are expected to have their jobs until Oct. 1, when the plant closes on a “permanent” basis, the EDD filing showed.

The Oakland operation may have become a less attractive asset after KapStone bought Texas-based Victory Packaging in 2015 for $615 million.

Plus, the Oakland operation didn’t function as efficiently as other sites in terms of meeting the needs of Victory packaging operations in the San Bernardino County city of Ontario, company executives stated during a July 27 conference call to discuss company financial results.

“Victory has a big presence in Southern California,” Matt Kaplan, chief executive officer of Kapstone Paper and Packaging, said during the conference call. “We were serving some of the Southern California needs from Oakland, which was a very high cost way of doing it. The Oakland Victory business will be transferred to Ontario.”