KP Snacks and Intersnack UK are set to establish a new £16m nut processing and packing facility in Rotherham, Yorkshire.
The new facility is expected to produce all of the nuts volume required by the combined entity in the future.
While maintaining the workforce of 150 people in Rotherham, the investment is expected to add an additional 80 roles over the next four years.
KP Snacks and Intersnack UK operations managing director Mark Thorpe said, "This significant investment demonstrates Intersnack's commitment to strengthening our nut business in the UK.
"Although proposed restructurings such as these are always difficult, we firmly believe this proposal is the most cost-effective way for us to modernise and "future proof" our nut processing capability."
The companies plan to shut a production site in Haverhill as a detailed review revealed that over capacity was hindering the ability to remain competitive.
In December 2012, Intersnack acquired KP Snacks from United Biscuits in a $600m deal, as part of its strategy to strengthen its snack business in the UK.
Together, the companies operate seven production facilities at Teesside, Tanfield, Ashby, Consett, Corby, Haverhill and Rotherham.
