Waterloo based food processor DC Foods is set to expand its manufacturing capacity to strengthen its business and create 50 new jobs in the region.

The company will receive a grant of $800,050 from the Southwestern Ontario Development Fund for this project.

The processing plant, which specialises in breaded chicken, fish and red meat products for private labels, currently employs 151 people.

With this expansion, the firm is expected to increase production capacity by more than 30% and produce a greater variety of products.

DC Foods general manager Don Kilimnik was quoted by CBC News as saying: "In order to accommodate the increased sales we need more space and more production equipment.

"I would say the grant has certainly encouraged the company to invest money for the growth and the jobs."

According to DC Foods, the new jobs, which will be permanent and full-time, are expected to be created over four years, CBC News reported.

The Southwestern Ontario Development Fund is aimed at creating jobs and diversification of the economy by encouraging regional businesses to pursue innovation and new markets.