There are claims that around 350 jobs may be at risk at Willerby Holiday Homes, one of the region's biggest caravan manufacturers.
Willerby is understood to have told local MPs that the move is "purely precautionary", "not definite" and will give the company "flexibility".
This follows the Chancellor's proposal to levy 20% VAT on static caravans from October.
Karl Turner, Labour MP for Hull East, has reacted to the possible redundancies.
More top news
The funeral of cancer-stricken teenager Daniel Binney, who walked mum down aisle shortly before his death, is being held today
An Ed Sheeran fan suffering from a condition which has paralysed her four times is relearning to walk in time for her wedding.
Kerrie Gosney has the early weather forecast