The company, which is based in Stokesley, is building a third fermenter at its site in Billingham to increase production by up to 50%.
The deal will create about 100 new jobs during construction then a further 300 to operate the facility.
Stockton North Labour MP Alex Cunningham said it was "tremendous good news" for local people.
The company employs about 600 people and exports to 13 countries around the world including Australia and the USA.
About 400 jobs are to be created across Teesside and North Yorkshire thanks to £30m of investment from Quorn Foods.