Douglas Island Pink and Chum has begun a two-phase expansion.
The hatchery has just broken ground on constructing its new storage warehouse, a project that could be completed by late winter to early spring.
Director of Operations Rick Focht said this will be a two-story building of about 6,900 square feet.
He said the work is being handled by local company North Pacific Erectors.
The second phase is still in development but could have the potential for production growth.