Edinburgh-based oatcake and biscuit manufacturer Nairn’s Oatcakes has opened its new gluten-free manufacturing operation in Newtongrange, Midlothian following an investment of more than £6.5m.

The expansion is a response to growing consumer demand for Nairn’s gluten-free products, resulting in the existing gluten-free sites such as Craigmillar, Edinburgh reaching capacity.

The company has said the new factory will “enhance and support Nairn’s future, allowing it to satisfy demand for its current range, whilst increasing capacity for a significant NPD pipeline to be developed”.

Martyn Gray, managing director at Nairn’s Oatcakes, said production at its current site had reached a ceiling, with limited scope for growth.

“With investment in larger-scale premises and plant, we now have both the capacity and competitive cost profile, associated with greater automation, to secure and develop the long-term future of Nairn’s.”

Its long-term banking partner HSBC has provided the funding for the investment. HSBC said it was “more than happy to fund Nairn’s new manufacturing site and support the business’ ambitions to expand”.

Nairn’s has also announced the rollout of larger pack sizes for its gluten-free oatcakes and the introduction of new children’s gluten-free products called Astro Bites.