Morrisons has bought a seafood facility in Grimsby as it targets a more vertically integrated supply chain.
The Bradford-based grocer has acquired the empty fish factory and plans to produce 10,000 tonnes of seafood a year at the plant.
The grocer is due to reveal details of the acquisition as it reports on its full-year results on Thursday. The retailer is expected to record a pre-tax profit of around £930m on sales of £17.6bn for the year to January 31.
Morrisons already owns its own abattoir and farm and is looking to ramp up the amount of fresh food it produces and sells.
Around 200 jobs will be created at the Europa Business Park factory in Grimsby which will fillet and portion a wide variety of seafood.
It hopes to produce salmon, cod and Japanese fish paste at the Lincolnshire plant, streamlining its supply into stores by using fewer suppliers.
The move comes a month after the retailer acquired a meat processing facility in Winsford, Cheshire from Vion UK.
The 105,000 sq ft site is a centralised fresh pork and lamb packing plant which has the capacity to expand into beef products and increase its overall production.
Morrisons chief executive Dalton Philips said: “This will deliver mouth-wateringly fresh fish into our stores. Nobody else is buying direct from the quayside but we’re doing it.
“Building this seafood business will allow us to move our fish from ‘catch to kitchen’ even more quickly, giving our customers fantastic quality seafood products at stunning prices.”
Morrisons has pledged to invest £200m over a three-year period to support the growth of the business.
The retailer is expected to update on its plans to refresh its stores, extend its reach into online grocery and create more M Local convenience stores on Thursday.