Kings Laundry is to build a state-of-the-art 40,000 sq. ft. facility in Little Island, Cork.
Initially, 40 new jobs will be created and the linen and laundry services firm expects this to grow up to 200 over the following two years.
The construction of the new facility at the 3.5 acre site represents an investment of €12m, and is set to open in May 2016.
An Irish-owned and run company, Kings Laundry already employees 310 people in its facility in Tallaght, Dublin.
Alan Murphy, company director, said: "We’re delighted to be expanding our business with the construction of our new facility in Cork.
"The primary purpose of the new operation is to ensure we continue to offer an unbeatable service to our customers in the Munster region.
"We already have an extensive client base in Cork and the surrounding counties and we are looking to grow this even further.
"Since 2006, we have seen consistent growth in our business, which can be attributed to efficiencies within our service offering.
"The new facility, which will be the most modern in Europe and will ensure that we can continue to keep our operating costs stable.
"We are also delighted to be announcing that we will be recruiting for 40 new positions in Cork. Recruitment will begin early next year and our new employees will be in place when we open in May."