Shoreham-based Higgidy Pies has won a major food contract, requiring it to double annual output by 2018.
The growth plans, which were approved by Adur District Council last week, will see Higgidy build on the site adjacent to its current buildings in Shoreham, West Sussex.
The existing workshop will be demolished and a new factory constructed, providing around 2,450sq m of industrial space and 1,000sq m of offices.
James Foottit, Higgidy chief executive, who founded the firm alongside his wife, Camilla, said they were looking to expand into the food-to-go market.
Foottit said: “We think we are about one year away from capacity, which is £30 million turnover. We have had to face up to the fact that land is very scarce in Sussex, but an opportunity came up by approaching the owner of the site next door.
Higgidy is on course for a turnover of £25m this year, but Foottit said they were not complacent: “We are very conscious that we are still risking a lot and we don’t feel safe, even though we have developed some great products and are very proud of our great brand.”
He added: “We’re hoping to expand the Higgidy Kitchen, which will allow us to not only increase our capacity but increase our flexibility and develop into other categories.”
An expected 150 new jobs will be created by the move over the next five years.
Last month, Higgidy celebrated British Pie Week by producing its 50-millionth pie.