Pet food company Ziwi is set to build a new $70 million factory in Napier which will employ 125 workers once open.
The 12,000sq m state-of-the-art production kitchen will be capable of doubling the company's current kitchen output in Tauranga.
Based in Awatoto, the factory will be fitted out with the latest processing technology, including new air-dried technology, which will allow the development of new product lines.
Ziwi managing director Richard Lawrence said the site is necessary to ensure the company continues to meet strong global demand for products.
"We're committed to continuing to offer pets - and their human companions - foods prepared in our new kitchens, right here in our home of New Zealand," he said.
"Ziwi has spent the past three years working with parties in evaluating a number of potential locations in the Tauranga region but has been unsuccessful in finding a site of sufficient size, and with the necessary infrastructure available in meeting the timeframe required."
Work on the new kitchen is expected to start in August, with a completion date in September or October 2021.
The company's three Tauranga sites will continue to operate until late 2021, when production from these sites shifts to Napier and the three Tauranga sites will close.
All employees at the Tauranga sites will be offered jobs at the new Napier kitchen.
Ziwi's processing kitchen in Christchurch and Auckland-based sales team will be unaffected.
"We realise that a transition of this nature will create some uncertainty for the Ziwi family and the wellbeing of our people remains of paramount importance," Lawrence said.
The managing director said the company's ambition is to double its annual revenue from its current base over the next 3-5 years, and the new Napier kitchen will be fundamental to achieving this goal.