Up to 40 jobs could go at AAK Bakery Services if a proposal to close its Oldham site in March 2012 gets the go-ahead.
Staff at the site, which supplies oils, emulsifiers/stabilisers, release agents and fats to the baking industry, are now being consulted after Swedish parent AarhusKarlshamn conducted a UK operational review.
HR manager for the UK Les Bales said AAK was now talking to all its employees: "We are not looking at closure until 2012 we want to try and mitigate job losses as much as possible."
Bales said it had similar operations in both Hull and Oldham and aimed to have facilities for bakery and food ingredients on one site. He added that it aimed to bring in changes this year.
"We want to strengthen marketing and development and build our NPD function. There will be a £1.5m investment in our facilities, skills and capability we want to focus on supporting our customers, improving our technical services and people skills."
Added Bales: "We’re working closely with our sites in Denmark and Sweden and integrating into one European supply chain." The company said it would look to move and redeploy people if possible following the review, such as to Runcorn.
AAK operates in three business areas: chocolate and confectionery fats, food ingredients, technical products and feed.