Brewing firm Theakston's - famous for its Old Peculier brand - is to expand its plant at Masham in North Yorkshire.
Theakstons was founded in Masham in 1827
Extra fermentation vessels are to be installed to meet an anticipated rise in demand for the firm's beers.
Last year, the 177-year-old firm, which had been owned by Scottish and Newcastle (S&N) since the 1980s, was sold back to the Theakston family.
Boss Simon Theakston said it was committed to brewing traditional English ales in Masham.
Not all Theakston's beers are brewed in the North Yorkshire market town.
Its best bitter is currently produced by S&N in Newcastle-upon-Tyne although from next spring brewing will switch to the John Smith plant in Tadcaster.
But Mr Theakston said the family was determined to brew as much of its beer in Masham as possible.
"Historically we have always been restricted by the sheer lack of capacity in the brewery but by adding additional fermenting capacity we will have made significant progress towards addressing the problem," he added.