Peter's Food Service has secured a multimillion-pound-a-year contract with Asda that will create 30 new jobs and result in a £650,000 investment in its South Wales bakery.

After 12 months of negotiations with Asda, the company will now produce up to 250,000 own label savoury pastries a week for the supermarket chain.

The 30 new full-time staff will fill a variety of skilled roles in production, engineering, product development, dispatch and sales.

"The new contract paves the way for growth and is an example of how we plan to develop future trading relationships with some of the major names in retail," said technical and retail sales director David Jackson.

The move follows a £20m management buyout in October, in which new MD Mike Grimwood took over from the Griffiths family.

The Peter's range, including bread products and meat snacks, is already carried in major supermarkets, cash and carries and wholesalers across the UK.