Penderyn Distillery, a UK-based producer of Welsh spirits and formerly known as Welsh Whisky Company, has invested around £1m to increase its production capacity and enter into new international markets.
The investment, which is partly supported by the Welsh Government, will allow the distillery to install an additional single pot still and a new two-pot still for expanding production of the single malt whiskies and other Welsh spirits.
Both the stills will be installed at its current premises in Wales's Brecon Beacons in August 2013 and January 2014, respectively.
Once installed and operational, the company expects to reach annual sales of 500,000 bottles per year, thereby allowing the distillery to keep up with growing demand in the UK, France and Germany, and also expand products throughout Europe, North America and Asia.
Penderyn Distillery managing director Stephen Davies said the company has registered growth in annual sales of its whiskey and plans to expand the production to keep up with growing demand.
"This is a significant milestone for us: ever since our first bottles hit the shelves in 2004 the quality of our products has shone through, helping us to grow the distillery into a company which sells single malt whisky all over the world," he added.
"We're already well distributed in the UK and are investing in new markets such as France and Germany, but expect to expand further throughout Europe. We have ambitions to explore further possibilities in North America and Asia on completion of the expansion project."