Solway Foods, whose factory is based at Manton Wood Enterprise Park in the town, is creating more than 100 new jobs.
The company supplies customers including Tesco and Costa, and says it has increased production by six per cent after securing extra business over the last year.
It is part of the 2 Sisters Food Group, which employs around 18,000 people across the UK, Ireland and Europe.
“This is good news for Solway Foods and shows how under 2 Sisters we are focused on growing our business into the future,” said Steve Bryant, general manager for Solway Foods at Manton Wood.
“The food industry overall remains tough and highly competitive, but the chilled sandwiches market is showing continued growth and by putting our customers at the heart of everything we do, we have been able to benefit.”
The 2 Sisters group is one of the UK’s largest food manufacturers, supplying chilled products like chilled ready meals, pizzas, soups, sandwiches and salads.
At Manton there are around 1,200 permanent staff, plus agency employees to meet peak demand.
Recruitment is already underway at the site, with jobs being phased in over the coming weeks.