Wilson's Country Group (WCG) has opened a £5 million potato packing and fresh fruit processing facility.
The facility, now extended to 120,000 sq ft, is located on a six-acre site and is now the largest in Ireland,.
WCG employs 150 people, and has already won a £1.1m contract to supply motorway service stations across the UK with its freshly prepared fruit products thanks to the expansion.
Chief executive of Craigavon-based WCG, Angus Wilson, said: "In developing our new business plan we have succeeded in bringing three existing operations on to one site at Carn.
"This has allowed us to achieve economies of scale, the end result of which has been our ability to bring significant costs out of our business.
"Our potato packing lines can now operate twice as effectively, allowing us to do away with a night shift. The development is our response to the significant changes taking place at retail level throughout the UK."
Wilson told the Belfast Telegraph of his concern about the Northern Ireland potato industry being able to maintain a sustainable supply chain in the future.
"Further major retail cuts could destroy the province's potato industry. Growers should not assume a drop in yields will automatically lead to an increase in the price paid for potatoes this autumn.
"There is now more competition than ever at retail level within Northern Ireland. The supermarkets are here to stay, but there must be an element of consideration to the growers and packers from supermarket buyers."