SUGAR distributer Napier Brown plans to create 20 jobs at its Normanton factory and open a new distribution centre on in Hull.
The firm, based at Normanton Industrial Estate, has announced the expansion of the business as it boosts sugar imports from outside Europe.
A shortage of sugar worldwide has led the company to broaden its supply network to countries including Mauritius, Swaziland, Zambia and Malawi.
The company plans to redesign its branding for its Whitworths Sugar product and boost production at the factory.
And the Hull centre will allow the company to receive and redistribute sugar from around the world to UK retailers.
Peter Hough, sugar sourcing director at the company, said: “We are planning to recruit around 20 jobs at the factory in the next 12 months.”
Napier Brown employs 150 people in Normanton, providing packaged sugar to shops, supermarkets and factories UK-wide.
Mr Hough said there was a growing need to bring in sugar from outside Europe despite a better sugar crop on the continent this year.
He said: “In the last two years there has been a shortage around the world which has affected supplies in Europe.
“There years ago we were sourcing sugar from four or five countries but now it is around 15 from Africa, the Caribbean and Pacific.”
Normanton MP Yvette Cooper, who toured the factory this week, praised the company for creating jobs.
She said: “It’s great to see a local business continuing to innovate and find ways to expand.
“When the overall economy is shrinking, and many jobs are under pressure, we need strong local businesses to keep our area going.”