Grampian Country, the Scottish food group, is to close its site at Newbridge, on the outskirts of Edinburgh, with the loss of almost 547 jobs.
The company, the second largest independently owned business in Scotland, said most of the chicken processing work carried out in Newbridge would be transferred to the firm's base at Coupar Angus. Other work would go to Cambuslang.
"We are operating in a very competitive environment and we must ensure that our business becomes more efficient and robust enough to face the continual developments within our market place," said Malcolm Smith, the chief executive of the group's chicken division.
The group, established in the 1980s, currently operates at 43 principle locations, employing almost 21,000 people throughout the UK, Thailand and Germany.