More than 640 jobs are at risk under plans to move operations from a fresh pork manufacturing site elsewhere.
Tulip Ltd said its site at Tipton in the West Midlands required "significant investment and redevelopment to cater for future requirements".
Opportunities for workers to transfer to other sites "will be explored thoroughly if the closure is confirmed", the firm said.
It added employees would be presented with "a number of options".
The business has proposed moving operations from Tipton to alternative UK sites and will be entering into collective consultation with employee representatives.
It said Tipton had "a long history and is well established in the local area with many long-serving employees".
It added the site required significant investment and redevelopment to cater for future requirements, "while its location places severe restrictions on any further development".
Adam Bates has worked at the factory for three years and said he was "shocked" by the news.
"I don't know where to go from here, what to do," he said, adding that transferring to different sites would be a tough decision for workers.
"They've got houses to pay for, children at school, they can't just up and leave," he said.
The business was "keen to retain the experience and skills of the Tipton team where possible".
The Unite union, which has more than 200 members at the site, said the news was "devastating".
Unite regional officer Rick Coyle said: "I will be seeking urgent talks with the management to see what can be done to save this site and also what redeployment opportunities there may be.
"Unite's top priority will be the welfare of our members and their families at this difficult time."
Follow BBC West Midlands on Facebook, on Twitter, and sign up for local news updates direct to your phone.