The investment will see the firm, which supplied materials used in the construction of Leeds’ tallest building, Bridgewater Place, move to an 11-acre site on Hedon Road, Hull.
New manufacturing and office facilities will be built for the expanding business, which is currently based on a 5.5-acre site on Dansom Lane South in the city.
The relocation will follow the completion of redevelopment work in the coming months.
Antony Eltherington, group managing director, said: “Investing in a site that is double the size of our existing is an indication of just how much we have grown over the last few years.”
Eltherington, which employs almost 200 people, has provided cladding and other materials to a range of development projects across the UK and abroad. These include London Southbank University and Cambridge University’s Corpus Christi College.