The factory will produce sandwiches, pizzas, soups and ready meals, with manufacturing planned to begin in the first quarter of 2019.
Hilton has also agreed to sign a further five-year supply deal to continue supplying Tesco’s central European stores with pre-packed meat.
Commenting on the deal, Hilton chief executive Robert Watson said: “We have a long and successful history of working with Tesco, one of the world’s biggest retailers. This agreement represents an opportunity to enter a growing food segment of the market.
‘Enter a growing food segment’
“We look forward to seeing the positive effect our tried and tested business model will have on this relationship, which will be supported by our flexible and versatile approach to meeting local requirements.”
Hilton would continue to look for further opportunities for geographic expansion, said Watson.
Tesco Central Europe ceo Matt Simister added: “I’m delighted that we are extending our deep group-wide partnership with Hilton to bring new manufacturing investment and capability to Poland.
“Our collective experience and expertise will bring new, innovative and high quality fresh and convenient products to our customers in central Europe”
Success with its pizza businesses
Hilton said it had seen success with its pizza businesses in Poland and Sweden in its trading update for the 52 weeks to January 1 this year.
Commenting at the beginning of the year, Hilton said: “The group’s financial position remains strong, positioning us well for further expansion. Hilton remains well placed to deliver continued growth over the medium term and will continue to explore further opportunities to develop our business in both domestic and overseas markets.”
The company also planned to build a new meat processing facility in Australia, to supply beef, lamb and pork products to retailer Woolworths’ stores in Queensland and New South Wales.
Meanwhile, earlier this month, Hilton confirmed reports that it was in talks to buy another company, believed to be seafood processor Icelandic Seachill.