The company said it considered the Latona Road plant “unsuitable for the redevelopment required to bring it up to modern-day manufacturing requirements”.
Peter Judge, divisional managing director of Tulip explained: “It is with great sadness that we are announcing our proposal to cease the production of fresh sausages at our Peckham site.
“This proposal is in no way a reflection on the quality or dedication of our workforce and we very much regret the impact that today’s announcement will have.
“However, the Peckham site is over 50 years old and has a number of infrastructure and environmental issues that would require complete redevelopment to bring it up to the standards of a modern, efficient production facility. Unfortunately, the space limitations of the existing factory makes redevelopment unviable in the company’s view.
“Our business is operating in a very competitive marketplace and it is critical that Tulip is a lowest cost producer.”
The business is now undergoing a 90-day consultation period with staff over the future of the site.