Hilton Food Group, the Northern Ireland-based secondary meat processing and packaging company, has announced €6m investment plans to build a state-of-the-art factory in Poland, as part of a long-term supply agreement with Tesco.

The new factory will manufacture prepared food lines, such as sandwiches, pizzas, ready meals and soups, for Tesco’s central European stores.

Hilton said it expects production at the new plant to start in 2019.

“We have a long and successful history of working with Tesco, one of the world’s biggest retailers. This agreement represents an opportunity to enter a growing food segment of the market,” said Hilton chief executive Robert Watson.

Pre-packed meat deal

Hilton Food Group also announced a new five-year deal to supply Tesco with pre-packed meat. Tesco is the key customer for Hilton, accounting for over 50% of annual sales.

Much of the beef and lamb supplied by Hilton to Tesco under its own-label range is processed and packed at Hilton’s Drogheda site.

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