UK-based potato and vegetable growing firm QV Foods is looking to consolidate its potato business by shifting its potato packaging site at March in Cambridgeshire to its Holbeach base in the UK.
The proposal will help QV Foods to save costs and address capacity requirements to handle its current business volumes.
The company has entered into a consultation period with about 140 of its staff at its potato packing site in March, Cambridgeshire.
While the move is expected to create around 125 new roles at Holbeach, the company plans to reduce redundancies by identifying suitable roles for affected employees at March.
QV Foods spokesperson said: "The owners of QV Foods are fully committed to growing the business for the future, but the Company has to have an efficient cost platform on which to do this.
"The proposal to consolidate the potato business at the Holbeach site, which sits at the centre of our farming and packing operations, is a logical step to achieving this.
"We are now entering into consultation with our staff about this proposal; in the meantime it's business as usual."
QV Foods supplies fresh and prepared potatoes and vegetables to retailers, wholesalers, foodservice outlets and industrial processors across the UK and into Europe.
It has been in the business since the early 1960s through customer own labels and its own range of brands such as Chippie's Choice, Potato Lovers, Baby Pearls and Veg Lovers.
The company owned by AH Worth Ltd, a fourth generation family-owned farming and packing business, operates from several sites across the UK.