Production will switch to Coupar Angus

"We deeply regret the proposed closure announced today and have informed union representatives and employees of our commitment to consult with them regarding the terms and details of the redundancy packages that will be available."

The factory had previously focused on servicing the demand for airline in-flight meals.

But the market dried up following the 11 September terrorist attacks on the US.

Grampian Country Food Group took over the Newbridge plant in 1998 from the Marshall Food Group.

'Tough decisions'

A Scottish Executive spokeswoman said: "We recognise the importance of this company to the Scottish economy, employing as it does some 4,000 people across Scotland and 21,000 people across the UK.

"We are disappointed at this announcement and very much regret these potential job losses which will be a severe blow to Edinburgh and the Lothians."

However she said the executive "recognised the fiercely competitive environment" in which the company operated.

Iain Grey is seeking a meeting with the firm

"Some tough decisions have to be taken to maintain a competitive position in the marketplace," the spokeswoman added.

She said officials from newly-appointed Enterprise Minister Iain Gray's department hoped to meet company representatives on Thursday.

"The immediate priority will be to get those affected into alternative employment," the spokeswoman said.

Andy Baird, the Scottish regional secretary of the Transport and General Workers Union, said he would be asking for an urgent meeting with Mr Gray to seek the Scottish Executive's support in putting pressure on the company to stay in the area.

Edinburgh West MSP Margaret Smith said it was "a very very sad day" for the area.

"This is a tragedy for the local community, following on from the loss of over 500 jobs from the same company two years ago," said the Liberal Democrat member.

She said a co-ordinated support service must be put in place for those losing their jobs to help them find other employment.

Each year the food group, which was set up in 1980, processes 1.5 million pigs, 1.15 million lambs, 198 million chickens, and 72,800 cattle.