National bakery chain Greggs is to build a production plant for pies and pasties, creating an estimated 300 jobs.
The factory, in Hinckley, will produce a wide range of frozen savoury products, which will be supplied to shops across southern Britain, where they will be baked to order.
At present, all of the company's savoury products are produced near Newcastle.
Greggs said it was to invest between £30 million and £35 million over two years on the 300m-long factory, to meet an expansion in demand.
The factory, which will be built on the former Johnsons Apparelmaster site, close to Ashby Canal, was approved by Hinckley and Bosworth Borough Council on Tuesday.
Planning committee chairman Councillor Rob Mayne said: "This is great news for the borough. To attract a company such as Greggs to the area is a great boost for us.
"I have been told the factory will employ 300 people, many of whom could be local.
"I represent the ward where the factory will be built and I had thought I would savour the smell of sausage rolls being cooked.
"But it is a frozen food production plant and there will be no baking taking place here."
Coun Mayne said the factory would be on the part of the site nearest to the A5, which is also linked to the M69, so products and ingredients could be moved easily.
He said construction could start at any time.
"I hope work starts as soon as possible, creating much-needed jobs," he said.
Martin Traynor, managing director of Leicestershire Chamber of Commerce, said: "This is fantastic news and demonstrates major chains such as Greggs are looking to invest in the county and create employment.
"The location of Hinckley is ideally suited for companies that need ready access to the motorway network."
Currently, Greggs supplies its 1,671 shops nationwide from a central savoury production unit, while 10 regional bakeries produce bread and other products.
In October, Greggs' chief executive, Ken McMeikan, said the company was planning a second savoury production plant in the south.
Last month, outgoing group chairman Derek Netherton announced the company was in the process of acquiring a site for "a frozen manufacturing facility in Leicestershire in order to meet the growth in demand".
A company spokesman would not go into details of how many people would be employed at Hinckley.
However, the spokesman confirmed the posts created by the development would all be new.
The approved plans include offices, cold storage and production areas.
The development will also have visitor and staff parking for 160 cars.
