United Biscuits (UB) is investing over £2M in its site at Aintree, Merseyside, where it plans to open a Centre of Excellence for cracker production.
The move will grow UB's output of Tuc crackers, create up to 28 jobs and enable the site to make McVitie's Jaffa Cake Bars.
UB derived some of the investment from the Northwest Regional Development Agency's Grants for Business Investment (GBI) programme part of the government's package of publicly funded business support.
Andrew Hawley, manufacturing director for biscuits, UB UK, said: "As a result of securing the GBI support, our Aintree Factory can now look forward to over £2M of new investment.
"This will enable the repatriation of Jaffa Cake Bars and Tuc Crackers from Northern Europe to Liverpool. These are both important UB brand names which have their manufacturing origins in the north west of England."
Another £250,000 GBI grant was given to Peter Hunt's Bakery in Bolton, which will allow the site to supply in-store bake-off products to supermarkets and create 48 jobs. "This will secure new jobs and provide financial security for the firm and its staff," said Peter Hunt md David Wood.