Moy Park has announced the company intends investing £20m in a new state-of-the-art convenience foods facility at its Grantham site.
The proposed development will create up to 150 new jobs at the factory in Gonerby Hill Foot.
Tony O'Neill, Moy Park's executive director for convenience foods and new business, said: "In the current economic climate this proposal is good news for Grantham.
"The new development could create 150 jobs at the factory and help secure the future of over 700 current jobs on the site.
"This investment will help us increase capacity and develop new and innovative products under both our own brand and for our customers in the UK retail and foodservice sectors.
"It is proposed that the initial stages of the new development at the Grantham site would be operational for the summer season."
Moy Park's chief executive officer Nigel Dunlop said the proposed development will transform the company's Grantham site into one of the most efficient, state-of-the-art operations of its kind in the UK and Europe.
"It will allow us to continue to successfully grow in line with market opportunities and develop our convenience foods division.
"In order to further enhance our innovation and customer service, strengthen our competitive position and build upon our success in this sector, we plan to consolidate our Grantham and Wisbech convenience foods operations to deliver a more streamlined structure for the business.
"We are commencing consultation with all the affected staff regarding these proposed changes.
"As part of this major investment it is proposed that Wisbech will be repositioned as a cooked sliced meat facility.
"Full consultations on this change will start immediately with all employees and if the proposal is confirmed the affected employees will be offered a guaranteed option of full redeployment to other manufacturing sites within the group," he added.
The new proposed environmentally-friendly facility would see capacity increase by over 25 percent.
Last month 17 jobs were axed at the food processing factory, with all affected employees offered alternative positions within the company.