Allpipe Engineering is to create 20 new jobs in the city, with investment of more than £1m.
The company specialises in the design, fabrication, and the installation of pipework and has 85 employees today.
The expansion will allow Allpipe not only to consolidate existing business, but also diversify into new areas of activity such as designing and installing systems for the pharmaceutical sector, according to managing director Liam Gallagher.
Allpipe also provides instrumentation and control systems, and a range of testing, inspection and commissioning services, including ongoing maintenance of the installations it has provided throughout Europe.
Allpipe's client list already reads like a who's who of manufacturing industry, with household names such as Invista, Irish Shell, ExxonMobil, GlaxoSmithKline, BP, Merck Sharp and Dohme, and Seagate.
Invest NI is to provide £180,000 of the total investment in the current phase of expansion.