The family-run Border Meats Ltd, which employs 20 people, is one of 13 food and drink producers in Scotland awarded grants totalling almost £3.5 million to diversify and expand operations.
The awards have been made through the Food Processing, Marketing and Co-operation grants from the Scottish Government.
Border Meats managing director Sam Carlisle, said it will go towards their £1 million project to replace the retail butchery premises on Goods Station Road with a purpose built industrial unit incorporating cutting plant, chills, offices and staff facilities.
Work has already started and is expected to take about six months.
Mr Carlisle said: “Our company is delighted to this receive grant funding for this exciting new development. This family run business will create employment in the Lockerbie area for many years to come.”
He added: “The six month building program is all being done using a local contractor along with local sub- contractors.
“Border Meats Ltd. are very grateful to all their loyal customers at the butchery and hope to cause as little inconvenience to them during the period of the development.
“Our company has had a great amount of help and support from our neighbouring business Tesco’s during construction. Also Lockerbie Timber Supplies for the use of their premises as a location for the temporary butchery.”