Canada-based food packaging company CKF will be producing its Earthcycle line of agricultural trays at its Hantsport, Nova Scotia facility.
The move follows CKF's acquisition of Earthcycle Packaging in May 2013.
The first production-runs will be delivered to its long-term client, Gourmet Trading which is an importer and distributor of fresh fruits and vegetables.
CKF president Ian Anderson said: "Our decision to invest in the people and the technology to manufacture Earthcycle in Canada further delivers on our sustainability mission. Consumers today have a wider definition of sustainability, one that incorporates socially responsible manufacturing and support of local businesses."
The company said that research has proved that consumers continue to demand packaging to be recyclable or compostable. They are also becoming more conscientious about where goods are produced, with a majority wanting to buy local and support local businesses.
Earthcycle trays have been in use by Gourmet Trading for over two years in programmes for leading natural retailers.
President of Gourmet Trading, North America's largest grower-packer of premium asparagus, Brian Miller said: "We were thrilled when we learned about CKF's plans to produce in North America. The environmental benefits of the Earthcycle line combined with North American manufacturing make it easy for our end consumers to make the sustainable lifestyle choices they are demanding.
"Also, in buying from CKF, our supply chains are shortened, allowing us to manage our inventory and be sure of product when we need it."
