Pennsylvania based Kennametal says it hopes to make a decision on the fate of its Lyndonville plant by March 28.
The plant employs approximately 80 people.
A spokeswoman for Kennametal said in an email that the firm is holding discussions with the United Steel Worker Committee at the plant over a reorganization plan that would close the facility and relocate operations.
The company says closing the plant would save about $2.2 million annually.
Kennametal is a global company with headquarters in Latrobe, Pa. Worldwide it employs nearly 14,000.
The company manufactures tools, equipment and materials used in metalworking, mining and construction.
If the Lyndonville plant is closed it would be the third significant layoff announcement in recent weeks.
Last month, IBM told state officials it is eliminating approximately 140 Vermont jobs.
Also in February, Plasan Carbon Composites in Bennington announced it will move to Michigan, eliminating 143 jobs.