The transition from film to digital has led French group Technicolor to close its film lab in Mirabel, in suburban Montreal, at a cost of 178 jobs.

A three-year sub-contracting deal between lab giants Deluxe Entertainment and Technicolor will also see both companies share film print processing and distribution work between one another for efficiencies.

Technicolor will outsource its 35mm bulk release printing business to Deluxe in North America, a move that will put 35mm release print orders with Deluxe’s film laboratories in Los Angeles and Toronto.

For its part, Deluxe will subcontract its 35mm print distribution business in the U.S. to Technicolor, which also has a Toronto operation.

“Today’s agreement with Technicolor is the result of significant changes in our industry enabled by new digital technologies causing the rapid transition from film to digital,” Cyril Drabinsky, president and CEO of Deluxe Entertainment Services Group, said in a statement.

With cinema screens in Canada and elsewhere fast moving to digital projection, the use of film prints is steadily reducing over time.