Ten new jobs are to be created at the Forres based quality meat producer, Highland Country Foods Ltd, as part of a £1m expansion programme backed by the local enterprise company and European funding.

Moray Badenoch and Strathspey Enterprise (MBSE), part of the Highlands and Islands Enterprise (HIE) network, has purchased a strip of land next to HCF's factory at the town's Greshop Industrial Estate, and is building a new extension which will be owned by MBSE and leased to HCF.

The move represents an enterprise investment of £858,000, which includes a European Regional Development Fund grant of £343,000.

In a separate agreement, the Scottish Executive Environment and Rural Affairs Department approved a European funded processing and marketing grant to HCF of more than £84,000.  This was towards the £240,000 cost of installing new plant and equipment in the new extension, enabling the company to increase productivity, efficiency and product quality.

This will aid the development of new products and improved marketing to new sectors, particularly the European market, which will in turn reduce unit production costs and help make the company more competitive.

Mandy Holmes of MBSE, said the backing was in line with the local enterprise company's strategy to expand the area's food and drink infrastructure. She added: "HCF is a very forward-looking company that has identified the need to expand in order to capitalise on increasing demand from its existing market base and to access new markets. As well as increasing staffing levels by almost 50%, this project will increase the representation of quality Scottish value added meats in the international markets and help underpin the importance of this area as a source of high quality products for the food and drink sector."

Highland Country Foods was established by Roy and Garry Dinnes in 1995, following the acquisition of Moray Meat Products. At that time the company was based in restricted premises in Elgin and employed only four people. Under the Dinnes brothers ownership the strategy has been to add as much value as possible by exercising control over procurement, curing, manufacturing and selling of a wider range of top quality products based on locally produced beef, lamb and pig meat.

The company's factory in Forres was built in 1996 with MBSE backing and was first extended in 1998.

Commenting on the latest plans, Roy Dinnes, said: "The project is a direct result of a growing demand for our premium cooked meats and charcuterie products and will allow the company to capitalise on our substantial investment in product development and quality assurance. We are extremely grateful to MBSE and HIE for their continued support and advice in achieving this next stage of our company's growth."