Highland Spring is to invest up to £20m in the expansion of its largest bottled water plant at Blackford in Perthshire.
The Blackford factory already has capacity to produce 232 million litres per annum but the group said it is making the move amid growing demand for its products in the soft drinks sector.
It is estimated more bottled water will be sold this year than fizzy drinks, partly as a result of health conscious consumers choosing to cut down on sugar and sweeteners.
Highland Spring operates four other production sites around the UK: Banffshire bottling 3 million litres per annum, Lennoxtown bottling 120 million litres per annum, a second Blackford site bottling 2 million litres per annum, and Swansea bottling 32 million litres per annum.