iPac Packaging Innovations has established the BRCGS AA+ food packaging site in Tanfield, having initially acquired it in 2022.
The facility has provided additional warehousing for about 2,800 pallets, alongside four fully functioning production lines, enabling iPac to further support its existing customers while pushing for expansion into new markets.
Previously, the £21m turnover family-owned business was based exclusively in Gateshead. It specialises in the design and production of sustainable rPET and rPP packaging products.
The expansion was boosted by a £600,000 investment from the Finance Durham Fund, established by Durham County Council and overseen by Business Durham, and a £400,000 investment from the North East Development Capital Fund, supported by the European Regional Development Fund, as well as £250,000 from the County Durham Growth Fund.
Managing director Jonny Catto said: "We are delighted to have completed works on our second production site. This expansion marks a significant milestone in iPac's exciting growth journey, providing significant additional capacity as well as future growth potential, allowing us to further expand our market offering in sustainable recycled thermoformed packaging."