Quality Food Processors (QFP) plans to invest $20 million to expand the company’s bacon processing plant in Dennison, Iowa. In return, Iowa awarded QFP $1 million in financial assistance through the state’s Economic Development Set-Aside (EDSA) Program.

QFP’s plant expansion is expected to create 195 jobs at a wage of $12.70 per hour, which was a requirement for the company to receive the funding. The company planned the expansion after signing a new, long-term supply agreement. QFP needs to expand and upgrade its existing bacon processing operations to house a new bacon cooking line. The company produces bacon and cooked meats by processing on contract for 10 customers, including brands such as King Cotton and Blue Ribbon.

Local officials in Dennison said the expansion couldn’t have come at a better time. Tyson Fresh Meats, a unit of Springdale, Ark.-based Tyson Foods Inc., announced plans to close its beef plant in Dennison, which will affect 400 workers.