The first new flour mill to be built in Scotland for 30 years is to be constructed thanks to a £17m investment.
Carr’s Milling Industries are building the factory in Kirkcaldy, Fife to replace an older facility.
At the moment, 71 people work at Hutchisons Mill, but it is not clear what impact the new site will have on jobs.
The company said: "The board has reviewed a range of options for improving the financial performance of the flour milling business, taking into account the needs of today's bakers and food manufacturers.
"As a result, the board has approved the construction of a state-of-the art flour mill adjacent to the Port of Kirkcaldy for a total investment of £17m.
"The new flour mill will be at the forefront of mill design, innovation and technology, with commissioning expected in September 2013."
The Scottish Government said it was “fantastic” news that the factory was to be built.
Kirkcaldy MSP David Torrance said: "The success in securing this investment for Scotland means that Kirkcaldy will be home to a world-class flour mill. It will secure the future of the site for many years to come and is fantastic news for everyone working at the existing mill.
"I am excited to see construction start on the project and the fact that Carrs have indicated they will look to work with local contractors to develop the project means that it is great news for the wider economy of Kirkcaldy."
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