An "intelligent" boning hall will be created with the money, upgrading its existing beef mince and diced burger lines. Dunbia, which opened its first slaughter and boning hall in Dungannon in 1983, is making the investment to upgrade technology and increase overall productivity levels.
A Dunbia spokesperson said: "The new boning hall will help the company achieve economies of scale, while the installation of new production lines, using the most modern automated retail butchery, will increase retail packing efficiencies."
The move is the latest in a string of investments and acquisitions in recent years; last year the company bought Lynch Quality Meats in Ayr, Scotland, took over factory facilities in Felinfach, Wales in 2013, and opened a state-of-the-art redevelopment at Dunbia Llanybydder in Wales in the same year.
Jim Dobson, managing director of Dunbia Group, said: "Innovation has been at the heart of our success and this investment in new production technology will create a centre of excellence for beef deboning in Ireland.
"It will help us to maintain our position as a leading meat processor in the UK and Ireland and to deliver on our growth strategy over the next three to five years."