Lower Hutt mayor Ray Wallace says the upgrade of a tobacco factory in Petone means more job security for a few hundred locals.
Imperial Tobacco says the $50 million upgrade will triple the number of cigarettes it produces annually to 3.9 billion.
The upgrade has generated 50 new jobs and the company now employs 210 staff, which it says are mostly locals.
Mr Wallace says there was talk the factory might relocate to Asia, so locals are pleased the company chose to continue its operations in Petone.
He says he's aware of "political correctness" regarding smoking, but he and his council support job creation, business development and investment, "and that's certainly what Imperial Tobacco has given here".