Tom Strang, site managing director, said: "The breaded and coated poultry sector has been in steady decline for a number of years and we have tried to diversify into other sectors to grow the business.
"Unfortunately this has not been fully successful and for some time now the business has been unprofitable. We will now enter into a 90 day consultation process with our employees concerning the future of the site."
Grampian said it did not envisage any potential redundancies will take place before the 18 February 2008. The company will be consulting with all 300 employees and their nominated representatives to explore ways of avoiding redundancies, including securing alternative employment either within the Grampian Group or with companies in the locality.