Grampian Country Food Group is to close its food processing plant at Newbridge, Edinburgh, with the loss of more than 500 jobs.
Grampian, which acquired the chicken processing business in September 1998 from Marshall Food Group, said that most of the work carried out at the factory would be transferred to the firm's base in Coupar Angus and some to its site in Cambuslang.
Chief executive of the firm's chicken division, Malcolm Smith, blamed the closure on the "very competitive environment we operate in".
He added: "We must ensure that our business becomes more efficient and robust enough to face the continual developments within our market place."
The site produced a range of cooked and uncooked chicken.
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