The Royal Mint is to invest £16.5m in new productions lines at its site in Llantrisant, Rhondda Cynon Taf.It said it was the most significant investment in the plant for more than 40 years and would help it compete for new work both home and abroad.
As well as making coins for the UK it also manufactures coins for other countries, collectors' coins, and military medals.
It said the investment would double its nickel plating production capacity.
It will see the construction of two new production lines and an effluent plant.
The first phase is due to be complete by September and is part of a five-year growth plan.
Chief executive Andrew Stafford said: "The fact that we're able to take advantage of these investment opportunities is testament to the excellent work of the team at the Royal Mint.
"It highlights how we are continuing to build for the future, compete internationally as a UK manufacturer and bring our vision of 'Making Money for Everyone' to life."
