A Forres-based organic vegetable producer is planning a major expansion which could create up to 20 new jobs, after a grant application of £266,300 was approved by HIE Moray.

Tio Ltd was established in 1998 to market the organic vegetable produce of Mid Coul Farms - a farming business based at Dalcross since 1912.

Initially produce was supplied through an existing Tesco packer but after a couple of years the company expanded its farming operations and production and now supplies Tesco with 100 per cent of its organic root vegetables in the UK.

The investment in additional buildings will improve capacity and efficiency and as a result the company will benefit from increased retail volumes planned by Tesco.

The £2.5m project will see the upgrading of facilities including the extension of the cold storage so that it can deal with significantly increased volumes. The success of the company means that they need to add considerably to their existing factory, and have planning permission for a 1,500m2 extension.

Tio Ltd has also been successful in obtaining the adjacent site from Moray Council which will enable it to continue its expansion from its existing location. The move is expected to see the company's staff numbers increase from 47 to 67 over the next few months.

The development is already underway and is managed by MacGregor Construction on behalf of Tio Ltd.

Mandy Holmes, development manager for HIE Moray said: "Tio Ltd is a young and vibrant company with a skilled, flexible and enthusiastic management team and workforce. Upgrading the quality of their facility will safeguard the continued development of the customer base and will result in new jobs for the area."

William Rose, Tio Ltd managing director said: "This is great news for the company and for Forres as it is clear that there is considerable potential for the company to expand and take on new employees so I am delighted that we are receiving support with this venture."