Tayto Group Ltd is committing nearly £6m in additional wages and salaries over the next five years as part of an investment at its Tandragee base.
Tayto is the third largest crisp and snack manufacturer in the UK.
It currently employs 390 staff at Tandragee Castle, and a further 900 at its other UK sites.
Invest Northern Ireland has offered the crisp and snack company £232,000 of support through the Jobs Fund to assist with its expansion.
When in place the new jobs will contribute some £1.16m a year in salaries to the local economy.
Paul Allen, Tayto's Chief Executive, said: "These new positions have been created as part of our long-term strategy to increase the capacity of our facilities here in Northern Ireland to meet increased demand, both nationally and internationally.
"While we are now very much a national company, our home is very definitely in County Armagh."
Announcing the new jobs on Friday Enterprise Minister Arlene Foster said the investment reflected the company's ongoing commitment to the local area.
"For over 50 years Tayto has been providing employment in Northern Ireland and in the past six years the company has experienced significant growth through acquisition," she said.
"Invest NI is supporting the investment through its Jobs Fund, which is helping companies create jobs and get people back into work.
"By 2014 Invest NI aims to have supported the creation of 4,000 jobs through this measure, which is part of its Boosting Business initiative."
UUP Newry & Armagh MLA Danny Kennedy welcomed the announcement.
"Tayto group is a highly respected and regarded local company which is a major employer in my Newry & Armagh constituency," Mr Kennedy said.
"It is fair to say that the Tayto brand is an iconic one for Ulster folk and its success is a testament to the quality of its products and the commitment of its workforce.
"It is particularly welcome coming as it does in the same week as the latest unemployment statistics showed that 65,000 people in Northern Ireland are currently claiming unemployment benefit.
"I commend Tayto on this announcement and wish them every continued success in the future."
Tayto also has plants in Scunthorpe, Corby, Wolverhampton and Bolton.
The firm owns a number of major brands including Real, Fusion, Tayto, Golden Wonder, Rough Cuts and Mr Porky.