Lakeland Dairies is to develop a new Pounds 4 million milling facility at Lough Egish in Co Monaghan.
The "provender" mill, which is due for completion in October 1997, will produce a range of animal feed stuffs.
Lakeland Dairies chairman Mr Dessie Boylan said the new mill demonstrated the company's "very strong commitment" to a thriving agri- trading industry in the north east.
Lakeland currently produces over 130,000 tonnes of animal foodstuffs each year form three mills. The new mill will have an initial production capacity of more than 65,000 tonnes a year and will operate to 150 9002 Quality Standards.