Frozen-food giant Findus Group has decided to invest EUR9.5m in a plant in France that had faced closure.

The company, owned by private-equity firm Lion Capital, plans to increase the 20,000-tonne capacity of the facility in Boulogne sur Mer by 25% over the next three years. Some 200 workers are employed at the plant and Findus said that around 50 jobs could be created by the investment.

The future of the plant, which makes Findus’s Croustibat fish fingers brand, had been in doubt due to its operating costs. At one stage, the costs of running the site had been 30% higher than those at a Findus plant in Newcastle-upon-Tyne in the UK.

The cost levels between the UK and French plants have been reduced by half and, with the signature of a new labour agreement earlier this month and the impact of new investment, is set to be cut altogether over the next three years.