Hundreds of jobs are expected to be safeguarded as a result of a joint funding pledge from the Scottish Government and the European Union.
A £1.6 million grant has been awarded to Irish-based meat processing company Kepak, which has a plant in Portlethen, Aberdeenshire.
Nearly 300 full-time jobs are believed to have been secured as a result of the funding, while an additional 40 roles are now expected to be created.
The company is aiming to use the money to significantly increase the amount of beef, cattle and lamb processed at the site.
The funding has been made available through the Food Processing, Marketing and Cooperation grant scheme, which is aimed at providing support for Scottish food and drink businesses.
On a visit to the site, Rural Affairs Minister Mairi Gougeon said: “This is great news for the local area, not just to the hundreds of workers and their families who will welcome the job security this provides, but also because the factory plays a vital role in helping farmers get their quality beef and lamb products from farm to fork.”
Yesterday, Alan Brown, Kepak’s Portlethen site manager, said: “This is a great financial and morale boost in these uncertain times.”