FOOD and drink packaging firm Huhtamaki is investing almost £5 million on new machinery for its Lurgan factory.
The cash injection will also see the creation of 12 new jobs.
The company makes moulded fibre products such as cup carriers, egg cartons and egg trays.
The expansion to its plant capacity is in response to growth in the egg market across Ireland and Britain.
Huhtamaki employs more than 200 people at plants in Lurgan and Lisburn.
The new machinery is expected to be ready for use early next year.
Huhtamaki Lurgan general manager Philip Woolsey said the investment "represents a huge vote of confidence in the strength, quality and dedication of our team at the Lurgan plant in what is our 80th anniversary".
“We have increased our product range, increased efficiency and improved our customer orientation - now we have the confidence to instal new state-of-the-art machinery to enable future growth and further improve our performance for our customers," he said.
“The investment provides a major boost for the local economy, increasing business for local suppliers and creating 12 full-time jobs, as well as more than 80 temporary jobs while the machinery is being installed.
"We have also increased our warehousing capacity, with a new facility completed and operational."
He added: “Our customers have been growing significantly in recent years, driven by population growth and increased egg consumption per head of capita.
"A focus on healthy eating and the importance of a good breakfast, along with lower price points, have all been pushing egg sales higher, particularly free range.”
Huhtamaki has around 16,700 employees worldwide across 69 manufacturing units and 23 sales offices.
Huhtamaki in Lurgan supplies retailers across Britain and Ireland including Sainsbury’s, Lidl and McDonald’s.
The plant was first established in the 1890s and is the last remaining paper mill in Ireland.
“Despite the challenges faced by manufacturing companies in Northern Ireland in terms of energy prices and logistics, we’ve been able to differentiate ourselves from our competitors, offering real value and service to our customers and generating efficiencies to offset some of the disadvantages of being located in Northern Ireland," added Mr Woolsey.
Stephen Kelly, chief executive of Manufacturing NI said it was welcome news.
“Manufacturing in Northern Ireland has plenty of good news stories to tell and this investment and job creation by Huhtamaki is certainly one of them," he said.
“For a global company to invest on such a large scale shows the total confidence which it has in the skills base at the Lurgan factory – and the local team should be very proud.
“Investment in new machinery, job creation and the development of new products are key elements of driving forward the manufacturing sector in Northern Ireland and I look forward to the new machine becoming operational.”
