The company, which said the new factory would make products such as its Wraps and Thins, is awaiting planning permission for the site from Burnley Borough Council and hopes to start building in February.
It claimed its investment reflected the growth in popularity of products providing a different slant on the traditional sandwich.
Sales of Warburtons Total Sandwich Alternatives had grown by 87% year-on-year and now accounted for 5.3% of Warburtons Total Wrapped Bakery value sales, it added.
“As a family business, we are able to take decisions for the long term and this planned investment demonstrates our continued commitment to future growth," said Warburtons md Neil Campbell.
“We recognise consumer tastes are changing and we must ensure we are fit to meet their needs, now and into the future.”
Warburtons has existing Wraps and Thins plants in Bristol and Bolton and produces more than £1M of these products each week.
Burnley was chosen as the next location for investment due to its supply chain links and suitability for build and is expected to produce 5,500 products an hour.
‘Invested more than £400M’
“Over the past decade we have invested more than £400M in our infrastructure to ensure we can make the best quality products ...
“We have 26 sites across the UK, meaning we can get our products from the bakery to the shelf in as little time as possible – meaning fresher bread for our consumers.”
Existing Warburtons production facilities at Burnley employ 250 people.
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