Integra has purchased six acres of industrial land near Paull, east of Hull, for £1.6m and plans a further £1.4m investment on the site.
The location is adjacent to a 2.5-acre site which is already owned and operated by Integra Buildings.
The investment represents the start of a programme of capital investment which will increase capacity and take advantage of major opportunities in the fast-growing modular building sector.
Integra Buildings has outgrown its current facility in Burstwick, East Yorkshire, where it has been based since 2000.
With the location secured in Paull, Integra has decided to put the Burstwick site up for sale.
Gary Parker, managing director of Integra Buildings, said: “Our manufacturing facilities at Burstwick and Paull are running at full capacity, so we are ready to make this major investment to take the business to the next level.
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“This will allow the physical expansion we need to enable our business to grow, so this is great news for the company, our staff, our customers and the local economy.
“This is the perfect time for us to develop more of the innovative manufacturing processes for which we are noted and strengthen our position as a leading player in the UK modular buildings market.”
The new site has increased hard standing capacity for product storage and space for further expansion in the future.
Chris Turner, commercial director at Integra Buildings, said “The old image of modular buildings as prefabs is a thing of the past.
“Modular building is the way forward in the construction industry.
“A wide range of sectors are recognising the benefits of modular, off-site construction and we are seeing that in the exceptionally strong demand for our products.
“We’re passionate about this form of construction and with this investment we will be practising what we preach by creating our own new modular office block, showcasing the super quality and innovation we offer to our clients.”