Belgian bakery and lipids producer Vandemoortele is investing in the construction of a plant in St Vulbas, near Lyon.
Expansion is prompted by increasing demand for frozen bakery products in France and growth opportunities in Europe, the company said.
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A spokesman for the Ghent-based firm, however, declined to comment on how much investment the plant will attract or when it is scheduled to enter service.
The move will create around 30 jobs once its first production line is fully operational.
Vandemoortele frozen bakery range includes bread, pastry, patisserie and American recipe products such as doughnuts, muffins, cookies and brownies.
It is present in 12 European countries and posted a 2012 turnover of around EUR1.3bn.
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