Around 60 new jobs are to be created in Spalding as part of a restructuring at a food company.
The Produce World Group has announced its intention to form a joint venture to grow, harvest, pack and market brassicas with Lincolnshire Field Products (LFP), based at Wykeham.
The new venture would be responsible for growing and harvesting as well as processing and packing.
But the change, which Produce World Group says will put the company in the best possible position to face the challenges of an increasingly competitive marketplace, will result in the closure of its site at Butterwick.
Consultations have begun with staff, but there are likely to be job losses.
Another site at Swinderby could also be closed and processing and packing of root vegetables moved to its site at Isleham.
Produce World Group executive chairman Neil Fraser said: “At Produce World we are growing ourbusiness and developing a structure which will enable us to meet current and future challenges.
“We are operating in a low margin business and more consolidation across the industry is inevitable.
“At the same time our customers are experiencing a period of unprecedented competition and changing consumer shopping habits.
“We have acted to ensure we can meet these challenges and make the Produce World Group sustainable for the future.
“We are committed to the long-term for the business and for fresh vegetable growing in Lincolnshire and across East Anglia.
“Our roots business at Isleham already operates successfully as a joint venture with Tompsett Burgess Growers and this is the model we plan to use with LFP.”
Produce World Group employs around 1,000 staff across all of its sites.
The joint venture with LFP will mean overall Produce World Group will have a turnover of around £250m, and will be the biggest grower and supplier of fresh vegetables in the UK.
Around £10m will be invested across the Wykeham and Isleham sites.
