Toome-based SDC Trailers is expected to create 40 new posts in management and engineering.
The firm currently employs more than 500.
The expansion coincides with a new £1m order from the Rezayat Group, a Saudi Arabian company involved in the oil and gas industries.
Last year, the company won a major contract from Asda. It was established in 1978 and is among the leading trailer manufacturers in Europe.