More than 100 jobs could be at risk at a Banff chicken processing factory.
Grampian Country Food Group said staff were being consulted
Grampian Country Food Group said that it had informed 140 workers of the potential closure of the site following a review of its chicken business.
The company said it would consult with the workforce in the coming months and hoped to keep compulsory redundancies to a minimum.
James Dallas, Scottish regional director, said: "We are operating in a fiercely competitive marketplace."
He said: "We have to ensure that we remain competitive.
"Unfortunately due to some historic decisions we are unable to develop the Banff facility into a viable, efficient processing unit as we were unable to expand due to insufficient space at this location.
"We deeply regret the proposed closure announced today and have informed our employees and their representatives of our commitment to consult with them."
It is not thought that any redundancies would take place before November.
First Minister and Banff and Buchan MP Alex Salmond said: "This is a deeply disappointing announcement, particularly so for the long-serving staff.
"The one consolation is that with no redundancies anticipated towards the end of the year it gives time to help staff secure alternative employment.
"I have been in touch with Scottish Enterprise Grampian and I will be visiting the plant on Monday with Stewart Stevenson MSP to see what assistance we can offer the workforce."