Earlier this week, it was announced that up to 950 jobs at the Corby site of the 2 Sisters Food Group could be at risk.
A 45-day consultation period immediately began as the firm questioned whether or not it can continue to operate in the town in the future.
Last Friday (February 7th), MP Andy Sawford said he would be meeting with Veepul Patel, chief executive of the Corby plant, for urgent talks about the factory's future.
Following these discussions, the local council has now announced that it is stepping in to create a taskforce, which aims to save a large number of the at-risk jobs, FoodManufacture reported.
Councillor Thomas Beattie has teamed up with Mr Sawford to battle to keep a large number of local people employed by preventing the closure of 2 Sisters' Solway Foods site.
Mr Beattie told FoodManufacture: "A closure such as this would be devastating for the workers concerned and a major blow to Corby's economy. Corby Borough Council will do all that it can with other partners, including central government, to help find a resolution to the company's current problems."
Solway Foods is currently the second largest employer in the Northamptonshire town, so closure would affect a large proportion of the area's population.
The 2 Sisters Food Group specialises in supplying retailers with a variety of chilled foods, including sandwiches and salads, and has been operating in Corby since 1989. The town's plant was given a £10 million makeover in 2008 to update its facilities.
However, 2 Sisters has said it feels the Corby site is aging and will not be suitable for long-term food production as it does not meet the standards of a modern plant.
Despite continuous investment in Solway Foods over the past couple of years, 2 Sisters has decided that further funding is still required to update the plant to meet the demands of the contemporary food production industry.
It has also found that adding to its portfolio of products would not be viable for the future as it has proved difficult to suit the needs of a varied consumer base in recent months and has lost a significant number of customers as a result.