ZEN Internet , the internet service provider, is investing £20m in a new home, with a £2m grant from the North West Development Agency to help fund the move.

The company, set up in Rochdale in 1995 with just four staff, now has nearly 300.

It has moved people from three sites in the town to Sandbrook Park, the former home of MyTravel and before that of Co-operative Retail Services. The group expects to continue growing, with hundreds more jobs expected to be created.

The new building has the potential to expand to more than 1,000 employees.

Steven Broomhead, chief executive of the NWDA, said: "We have been working alongside Zen Internet for sometime now to help them grow within the region, and we are delighted to support the company's expansion in Rochdale. The investment by the NWDA will add to the significant private investment by the company and will lead to the creation of 250 jobs over the next five years."

The NWDA said part of its £1.95m grant would be repaid by Zen when it achieves agreed targets.

Richard Tang (pictured), managing director, said: "By moving to Sandbrook Park, Zen Internet is demonstrating its commitment to remain in Rochdale, the town where it was founded."