Custom Foods, a subsidiary of US food giant Heinz, will increase employment by 200 as part of a £20 million investment programme at its Dundalk plant.
The company will become one of the key producers of frozen foods in Europe according to the Minister for Agriculture and Food, Mr Yates.
Custom Foods currently employs 260 people producing pizza bases in the north Louth town. It will now manufacture part of the Heinz Weight Watcher brand.