United Biscuits continues to restructure with a £10 million plan to expand its Harlesden plant in north west London, this follows the closure of its biscuit production facility in the English Midlands earlier this year.
The company, which makes McVities, Hula Hoops and the jaffa cake range believes the strategic move will boost production and improve operating efficiency at what is already the biggest biscuit factory in Europe.
The London Development Agency (LDA) welcomed the expansion of the factory as a major coup for the capital's industrial base, where food manufacturing employs more than 31,000 people.
After rationalisations earlier this year at the Fontaneda biscuit group in Spain, United Biscuits has announced it is to invest £10m in its existing UK site, with the promise of a further £1.1m from the state-funded Learning and Skills Council.
The new deal comes as part of a major investment programme by company owners Cinven, BNP Paribas and a consortium of private equity investors. Adding Mini Cheddars and Hob Nobs to the factory's production lines, the factory is set to increase its output from 70,000 tonnes a year to 100,000 tonnes.
Creating 200 new jobs, LDA officials have agreed with United Biscuits' chief executive, Malcolm Ritchie, a grant of £200,000 in the hope of giving a boost to the area.