UK-based fish-processing firm Icelandic Seachill is set to cease ready meal production at its Meals West site at the South Humberside Industrial Estate.
The move, which will affect 250 jobs, follows a review of operations by the company in May 2013.
Icelandic Seachill noted that it it has been forced to take up the proposal due to a decline in consumer demand for ready meals.
The company commenced a 45-day period of consultation with the closure-affected staff.
Icelandic Seachill CEO Malcolm Eley said, "Without a significant growth in the volume of meals produced we do not believe that it would be possible to justify the level of investment required to sustain ready meal production.
"It is a regrettable position but if the proposals do go ahead, our number one priority is to support those directly impacted and we will do everything in our power to redeploy as many people as possible across our other UK sites."
Icelandic Seachill manufactures own-label fish dishes under the Saucy Fish Co brand as well as supplies portioned, packaged and wet fish counter seafood to retailers.
