Own-label food manufacturer Samworth Brothers is buying land to build a new factory that will create 200 new jobs and could create up to 700.
Leicester City Council has agreed a deal with the family-owned pie and sandwich maker to buy 50,000m2 of greenfield land in Ashton Green, Leicester to build the factory.
The new facility will create 200 jobs and up to 500 more could follow.
The site will not be operational until at least 2014, according to a report in the Leicester Mercury.
Leicester City Council confirmed with The Manufacturer that the council has given permission for the company to buy the land subject to planning consent being granted.
It is understood the site is close to Bradgate Bakery and Walkers Charnwood Bakery on Madeline Road in North Leicester. The area is the epicentre for food manufacture in the East Midlands, and close to the spiritual home of pie-making in Melton Mowbray.
Samworth Bros makes own-label and branded pastries and sandwiches and owns brands including Kettleby Foods, Ginsters and Dickinson & Morris.
New chief executive Lindsey Pownall joined Samworth Bros in March 2012 when ex-CEO Brian Stein retired from the company after long service.
