The new equipment will be installed at their Tetbury, Gloucestershire, site and be fully commissioned by January 2013, ready for the new growing season.
Over the last two years, Melcourt has spent £800,000 on state-of-the-art growing media manufacturing equipment to produce its Sylvamix range of 100 per cent renewable professional growing media.
Melcourt managing director Andy Chalmers said: "This ongoing investment is testament to our belief that the use of quality renewable growing media is here to stay and that Melcourt are now recognised as the brand leader in this important and fast growing sector.
"Our company is unique in having substantial quantities of sustainable British-sourced raw materials and a dedicated, qualified, technical team to ensure that customers have even their bespoke mixes supplied within a few days of ordering."
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