The Scott Group will embark on a £2.5 million regeneration project to relocate its pallet manufacturing facility.
The investment with Forth Ports, is supported by a £250,000 Regional Assistance Grant from Scottish Enterprise and will move the site from Rosyth and develop it at to Burntisland.
The scheme will secure 48 jobs in Fife, install the factory with new equipment and upgrade the electricity supply.
Scott Group representatives hope the project will bring more jobs to Fife in the long term.
Alan Gibson, managing director, said: “We were founded in Scotland over 25 years ago and maintaining our heritage as a Scottish business is vital.
“We recently restructured our management team at Scott Pallets and confirmed plans for reinvestment in the business to facilitate our continued growth, increasing employment and supporting our customers meet their environmental objectives.”
Stuart Wallace, divisional director of Forth Ports, added: “This investment with our partners, Scott Group, will secure important jobs for Fife.”
The Scott Group has 27 operational sites around the UK.