The 2 Sisters-owned Coupar Angus poultry slaughterhouse has been served a final warning for complaints about odour.
A spokesperson for the Scottish Environment Protection Agency (SEPA) said it had asked the factory to put remedial action in place.
“We are in active discussions regarding an improvement plan which must include greater mitigation and control of all odour sources at the site.”
It has recorded five separate “offensive odour” incidents and asked the factory to put remedial action in place.
See also: How to control smells on poultry farms
A spokesperson for 2 Sisters said it was working with SEPA to resolve the problem.
“We’re aware that residents have raised issues with odour in the local area.
“As an important local employer and one of the very few processors producing Scottish chicken, we are proud of our heritage, aim to be a good neighbour and take any complaints seriously.
“Our site management are working with the Community Council and SEPA to discuss the issues raised.”