A WEST Devon company is bucking the current economic trend, with the announcement of a major expansion plan.

Ambrosia Ltd, which produces custard, rice pudding and a range of dairy-based puddings at its Lifton site, has submitted a planning application which will see huge changes at the factory.

The company wants to demolish existing buildings and build new offices, a canteen and training room. The existing production facilities would be extended with the demolition and re-building of site plant, and new access to the factory is also planned.

Steve Pretty, Ambrosia's factory general manager, said the investment programme would cover a four-year period.

'It's really building on the success of the site,' he said.

'Premier Foods acquired this site from Unilever in 2003 and since then, we have doubled our output and created over 100 jobs, which has taken us to about 300 permanent employees, and on top of that we have about 20 other contract jobs.

'It's a profitable business and we will be increasing the capability of the site and the capability to produce new dessert products, building on the Ambrosia brand.

'Premier Foods have really helped to drive up volume — these are really exciting times for us.'

Mr Pretty said the site, in existence since 1917, would be modernised, with many of the buildings dating from the 1950s being replaced.

The company is keen to involve and inform residents in the area about the expansion plans for the factory.

Open days are being held today (Thursday) and tomorrow between noon and 2pm and on Saturday and Sunday between 10am and 2pm.

Mr Pretty said: 'We are inviting our neighbours in to see a display and have the opportunity to speak to us about more of the detail, and we are hoping that everybody will see this as very beneficial to the area.'

At present, he was unable to give any financial details regarding the investment package as the company was in a closed period prior to the announcement of year-end results, but more information would be available in due course.

No new jobs have been announced in connection with the development, but Mr Pretty said further information would be announced as the project moved forward.

It is hoped the investment programme will get under way in the spring, once the application has completed the planning processes.

Mr Pretty said: 'We have started the design work already, as part of the planning application, but we will need to purchase new equipment.'

Mr Pretty said production of Ambrosia's wide range should continue throughout the building works.

'The project team that we are putting in place and the on-going factory team will need to work hand-in-glove to ensure we can still produce our products, and the way we have designed the building will allow us to install while we keep producing on the site.'

Ambrosia Creamery began business as a dried milk factory, supplying troops in the first world war, taking in fresh milk each day from local farms.

The creamery began producing canned rice pudding in the 1930s, and expanded rapidly in the 1950s as it introduced other milk-based products to its brand, including its famous Devon custard.

Mr Pretty said he hoped the capital investment at Ambrosia in Lifton would be welcomed by all in the current austere financial climate.

'I hope it will allay the fears and rumours that we hear from time to time, that Ambrosia is closing, which is always upsetting and quite the opposite to the truth.

'This site is a real success story — and we are feeling very good about it.'