A total of 260 people are to lose their jobs at a seafood factory in Newcastle-upon-Tyne.
Young's Bluecrest wants to concentrate on its Humber operation
Young's Bluecrest Seafood (YBS) said on Tuesday it was to close its production line in Gosforth as part of a reorganisation, by the end of the year.
A spokeswoman for the company said there would be opportunities for workers to relocate.
YBS said it will concentrate on its six core factories in Grimsby and Hull and invest £15m over the next 12 months.
Workers at the plant in Gosforth, where they make chilled fish products, were being told about the closure on Tuesday afternoon.
Wynne Griffiths, chief executive of YBS, said: "We are very sad to have taken this difficult decision on the proposal to close Gosforth.
"At the time of the acquisition in June 2002, the plant gave us some good customer opportunities and manufacturing skills.
"However, the business has changed significantly since then and careful analysis shows that our chilled business will be most successful if we consolidate production into the Humber operation, which also puts all our chilled manufacturing closer to primary processing in Grimsby."
He added; "I am particularly sorry that we will lose some good people in this process. However, we are initiating consultation and will consider in detail the needs of anyone who might like to consider relocation.
"Overall, the prospects for Young's Bluecrest are bright, and we welcome any opportunities for Gosforth staff to join us elsewhere in the organisation."