As many as 200 new jobs are to be created over the next two years at Wingland Foods, Sutton Bridge, thanks to a major expansion project.
The firm, part of Bakkavor Group, is improving its Millennium Way site by expanding production and warehousing facilities to support greater demand from the retailer Waitrose.
A turf-cutting ceremony took place at the site, which employs more than 450 people, on Friday with general manager Steve Woolley, other managers and staff.
Mr Woolley said: “This expansion marks the next step in the development of the Wingland site and we are excited to be able to get this project underway.
“It will allow us to meet the growth demands of our customer and improve the overall efficiency of the site.
“We enjoy a good relationship with Waitrose and are proud to supply them and contribute to their growth.”
Wingland Foods supplies freshly prepared salads and vegetables to a number of clients and the expansion of its Sutton Bridge site is due to be completed in April.
It also involves better access to the site and a new road link to the docking area on Millennium Way.
Coun John Grimwood, chairman of Sutton Bridge Parish Council, said: “Wingland Foods is an established employer in Sutton Bridge and it’s pleasing to see that it’s improving and going from strength to strength.
“I think it’s wonderful news that more people are to be employed there and this has to be good for the economy of the village.”
Wingland Foods opened in 2000 and became part of Bakkavor Group five years later after its £485million takeover of British food firm Geest.
Sutton Bridge district councillor Michael Booth said: “This is very good news for Sutton Bridge and shows that Wingland Foods is committed to the area.”