Maplehurst Bakeries, a unit of Canada-based Weston Foods, is planning to invest $77.8m in the expansion of its production plant in Lebanon, Indiana.
The investment will be used to renovate and equip a new plant in Lebanon which will cover an area of around 180,000ft2.
The proposed plant will include warehouse, distribution and manufacturing operations for its cake and cupcake products, when operational in March 2015.
Maplehurst Bakeries president Kevin McDonough said: "This new state-of the-art plant will give Maplehurst Bakeries the added capacity to better serve our North American customers with a wider product assortment of cakes."
Additionally, the company has received funding in conditional tax credits and in training grants from Indiana Economic Development Corporation.
Maplehurst currently employs 1,000 people and it will begin hiring in the beginning of December.
The company produces frozen bakery products, including donuts, pies, cupcakes, cake, rye bread, sweet goods and gluten-free baked goods, for in-store and food service bakeries.