Food packaging producer Faerch Plast is planning to install a new extrusion line and 11 thermoformers at its UK plant by early 2015 to double its production capacity.
The expansion will allow Faerch Plast to meet its annual output for CPET read meal trays and packaging materials for cold foods, snacks, bakery, dairy, vegetables and cold meats.
Currently, the 14,000m² plant houses an extrusion line and thermoformers, with around 60 employees.
The company will also install associated production equipment, such as robot packing systems, cooling machines and compressors.
It will increase its stockholding capacity by 2,000m² and increase its headcount by 50%, with focus on production personnel.
Faerch Plast Group CEO Lars Gade Hansen said: "This ongoing investment in Durham emphasises our commitment to local customers and further increases supply chain security for our wide range of food containers.
"This also underlines the commitment of our new owners, EQT, to continue investing in Faerch Plast growth.
"It marks a very important time in our business strategy and will help accelerate our expansion in the UK."
Additionally, the company acquired a plot adjacent to the factory and now has 30,000m² of industrial site at its disposal in Durham, which will allow for the possibility of further expansion as demand increases.
Faerch Plast UK managing director Joe Iannidinardo said: "The investment also enables us to efficiently service our UK customers with an enhanced portfolio of products in a facility built to the highest standards of quality and efficiency.
"We remain dedicated to investing in our customers’ futures and to growing our business."
The company also offers a closed-loop cradle-to-cradle process for the production of trays from post-consumer recycled PET or rPET.