UK-based meat processor Dunbia is planning to invest £7.5m to create over 200 jobs at its new plant in Felinfach near Lampeter, with the support of a £1.8m loan from the Welsh Government.
Expected to open in February 2014, the new plant will supply more than 1.5 million lambs per year to European markets.
Dunbia currently employs 3,000 people at 12 sites in the UK and Ireland.
Welsh Economy Minister Edwina Hart said that Dunbia is already a significant employer in rural Wales and a major player in the red meat sector which was worth £595m to the Welsh economy in 2012.
"The announcement of job losses at Sharp, near Wrexham, earlier this week was a stark reminder of just how volatile the economy remains.
"This investment supports Welsh Government policies and initiatives to increase added value processing of agricultural produce in Wales to ensure the benefits are retained in Wales and help create jobs and spread prosperity," Hart added.
