2 Sisters, the food producer owned by tycoon Ranjit Boparan, is to spend £38m on a huge revamp of its Sheffield ready meals factory.
The investment is part of a wider £55m plan to create state-of-the-art manufacturing facilities across its factories and support key customer Marks & Spencer.
The £3.5bn-turnover group’s meal services division produces own-label products including ready meals and soups and sauces for M&S.
Simon Wookey, divisional managing director at 2 Sisters Food Group told The Yorkshire Post: “It’s all about innovation, particularly with Marks & Spencer.
“They lead the ready meals market and they do so by a very, very active new product development programme.
“Pennine Foods in Sheffield is an extremely flexible factory in terms of pioneering new cuisines. That’s one reason why we decided to continue to invest in this site because we have 800 employees and a lot have been there for quite some time.
“Our customer likes the skill set they bring. That was fundamental in the decision we have taken.”
The majority of the investment will be used to completely rebuild Pennine, at Drake House Crescent, Waterthorpe.
Pennine is a purpose-built site, established in 1986, which has now reached capacity. 2 Sisters bought the factory as part of Mr Boparan’s £342m acquisition of Northern Foods in 2011.
The group said the rebuild will develop best-in-class commercial and operational processes to support continued innovation, expand capacity and drive further profitability.
2 Sisters has 23,000 employees.