Topframe Engineering is a specialist in structural and general engineering, machine design and fabrication, and currently operates across two sites in Castledawson and Portglenone.
The new facility will allow the company to focus its operations at their primary site in Castledawson, significantly improving efficiency.
Economy minister Conor Murphy said: "This investment is a significant boost for the mid-Ulster region, creating 22 skilled jobs with competitive salaries while enhancing Topframe Engineering’s overall productivity.
"Increasing productivity is crucial for improving living standards across the north, and I’m pleased to see that the new factory and equipment will help the company achieve an almost 40 per cent rise in productivity per employee.
"Furthermore, this investment will open doors for Topframe to secure new export contracts and accelerate its growth."
Matt Connery, Topframe Engineering’s managing director, said: "We have bold growth plans for the next three to five years, including significant investments such as refurbishing and expanding our Castledawson factory and building a new, state-of-the-art 5,000 sq ft office block.
"These investments will drive a substantial increase in sales within the structural steel industry, materials processing industry and our Biddy Attachments brand, positioning us to expand into new markets beyond Northern Ireland."
Invest Northern Ireland is supporting the investment with a capital grant as well as technical assistance to help the company install a software system that will optimise operations across all aspects of the business.
Brendan McGuigan, director of advanced manufacturing and engineering in Invest NI, added: "This investment will provide the infrastructure, skills, and operational efficiency needed to increase its sales outside Northern Ireland to 40 per cent of turnover by the end of 2026.
"It also reinforces mid-Ulster’s growing reputation as a leader in the materials handling sector, known internationally for its high quality goods and services."
