TWENTY-six jobs will be created at a Gwent drinks packaging company, through a four-year, £12 million investment.

SEDA UK, based at Hawtin Park, Blackwood, will also introduce new equipment and technology to the plant.

The company produces a range of paper cups, lids and containers for fast food outlets, vending machines and the dairy sector.

Several millions of items are produced every day at the Blackwood site, and the company is a leading supplier of the UK market. An estimated five billion paper drinking cups and 4.5 billion lids are used every year in the UK.

This is SEDA UK's second major investment in Blackwood since the plant opened in 2004, the latest being supported by the Assembly through its Single Investment Fund.

As well as creating jobs, the programme will safeguard 145 of the existing 227 jobs.

Managing director Lorenzo Angelucci said the latest investment will enable the Blackwood plant to increase its cost competitiveness.

"It increases capacity and capability, which is important for medium term development of the business. It means we can maintain our momentum and provide an even better service to customers," he said.

"Our Welsh operation is a great success and we are delighted to have secured this investment from our parent company with assistance and support from the Assembly, which has been extremely effective and very welcome."

SEDA UK is part of the SEDA Group, a European manufacturer of packaging and cartons, mainly to fast food, ice cream and dairy markets. Customers include McDonalds, Coca Cola, Nestle and Unilever.

It employs nearly 2,000 people around Europe.