Almost 300 jobs are at risk in Bodmin after meat manufacturer Tulip Foods announced plans to end production at the Cornish site.
The company has started a consultation process over the proposed redundancies with a final decision due in December.
Union Unite have expressed concern over the impact on Cornwall's economy:
This is another blow for Bodmin – Tulip used to be one of the primary employers in Bodmin and the local community will suffer greatly from these losses just before Christmas. This gives us a measure of the impact of continuing political and economic uncertainty in Cornwall, causing the ongoing shrinkage of our manufacturing economy. This is another shock wave to the already battered Cornish economy.
However, the company are saying that closure is not a "foregone conclusion":
Tulip Ltd can confirm that it has announced that it will be entering into consultation with employee representatives at its Bodmin facility over the future viability of the site.