Whitestone has bought a property next door to its Humber St site to create 1100sq m of additional factory space.
Chief executive Simon Berry said the new space would include packing rooms, a maturation space, storage, a tourist gantry for visitors, and more jobs "as required".
The project was about meeting demand, largely driven by the domestic market, he said.
He declined to say how much the expansion would cost or how much cheese the company produced a year at present, citing commercial sensitivity.
The expansion would mean greater space to move for the current workforce of about 50 full-time employees.
"As we grow, we’ll look at additional staff as required."
A large shed was being built over the new site and would be filled with production equipment when demand required it.
"We’re looking long term."
The new plant should be finished by July but work could continue through winter if there were delays. The existing operation would continue unaffected while the extension was built.
Mr Berry said the expansion showed production was still possible in the regions, despite Cadbury’s choice to cut 350 jobs in Dunedin in mid-February.
It was an exciting project and the most significant in the company’s history in terms of growing its production capacity.
"One of the favourite parts has been watching the wall slabs going up with the help of the South Island’s largest crane. That was pretty cool."
Mr Berry said the tourist pathway would be coupled with guided tours to create transparency around the cheese and the manufacturing process.
"This is what we’re about."
Waitaki Mayor Gary Kircher said the expansion was good for the district and the years of work the company had put into developing its products and markets were coming to fruition.
The extension will be publicly opened in September.
