US cereal maker Malt-O-Meal Co. is to undertake a US$136m expansion of its Asheboro production facility in North Carolina.

The Minneapolis-based firm said construction is scheduled to begin in 2011 and be completed in 2012. It will include the addition of around 200,000 sq ft of production space, two additional production lines and the building of an on-site, 80,000 sq ft warehouse.

The announcement follows approvals by the Randolph County Board of Commissioners and the Asheboro City Council of an eight-year, $3.2m package of economic incentives to support the expansion. North Carolina has also committed an additional $350,000 in tax incentives to support of the expansion.

The facility, which was opened in September 2009, already employs around 200 staff The planned expansion will create an additional 80 jobs at the facility by 2015, the firm said.

"The expansion we're announcing today creates capacity for the demand we're seeing today and for the growth we believe is yet to come," said Malt-O-Meal president and CEO Chris Neugent.

The Asheboro facility produces brands including Malt-O-Meal Frosted Mini Spooners, Malt-O-Meal Frosted Flakes, and Better Oats.