Cavaghan and Gray has won new contracts for M&S's Gastro range, prepared vegetables and fish meals. In total there will be about 25 products launched including five fish meals, five for the Gastro range and 15 vegetable dishes.
Originally, the firm planned to build an extension to cater for the new workload but has since decided to expand internally.
Work started eight weeks ago to transform a former dry food store into a new production facility, with the storage area relocated to Kingmoor.
The fish meals contract has moved across the border from Pinneys of Scotland in Annan and, though it is the smallest of the three, will create opportunities for former workers of the redundant factory, from which hundreds of jobs have been lost.
The 1,200-strong workforce have welcomed the news which will also secure their jobs.
Mike Armstrong started his career at Cavaghan and Gray as a student in 1988 when the firm also had an operation in London Road.
He worked his way up the ranks and is now head of technical in food safety and quality.
"I haven't moved on and I've really enjoyed my time here," said the 51-year-old of Durdar, Carlisle. "It has always been something different.
"There has been lots of growth; we've seen lots of different factories open over the years and lots of great products coming in.
"I've really enjoyed that part of it, being part of the success.
"[The deal] is great for the stability of Cavray and for Carlisle. It's a lot of business coming here.
"There's some great products. It's obviously sad about Pinneys but from the growth we're having it's really good and secures lots of jobs here."