Proposals to close a vegetable packing factory in Swinderby near Lincoln could lead to around 90 job losses for the area.
Despite only acquiring the site in Swinderby in October 2014, Produce World Group announced that it proposes to close this factory as well as the site in Butterwick near Boston.
The closure of the two factories would total around 340 job losses and comes as the company announced plans for restructuring the business.
The company confirmed that this is in a bid to consolidate the business and run it from the Isleham site in Cambridgeshire.
It plans to form a joint venture with Lincolnshire Field Products (LFP) based in Whykeham near Spalding. The site would be responsible for all growing and harvesting, as well as all processing and packing, creating 60 jobs.
The joint venture with LFP will mean that the Produce World Group will have an overall turnover of around £250 million, and will be the biggest grower and supplier of fresh vegetables in the UK. Around £10 million will be invested across the Wykeham and Isleham sites.
The company has entered into consultation with staff and their representatives at the Swinderby site.
Neil Fraser, Produce World Group Executive Chairman, said: “We are very much aware of the impact that the proposed closures will have on our colleagues at Butterwick and Swinderby, and we have considered and will consider every possible option before implementing these proposals.
“Both sites will remain open for a number of months and we will do everything we can to help colleagues to find alternative employment including jobs within the Produce World Group.”