Maple Leaf Foods is planning to build a new $395 million processing plant at the Red Hill Industrial Park on the south-east Mountain.
Construction will begin next year on the plant that will make sliced deli meats and hot dogs and is expected to emit minimal odour.
The new facility is slated to be completed in 2014 and employ 670 people.
The move is being touted by city economic development officials, who have been working on the project since January, as one of the largest, if not the single largest private sector investment in the history of Hamilton.
It is also the largest food industry investment in Canada.
The new plant will be built next door to the Maple Leaf-owned Canada Bread facility that recently opened at the industrial park.
Maple Leaf is also building three other new plants across the country and closing several other operations including plants and distribution centres in east Hamilton, Burlington and Kitchener as part of a $560 million modernization plan.