Around £1.3 million of European Union funding is to be spent boosting capacity at the Lawns Industrial Estate in Rhymney.
In total, around £2m will be spent building ten new units and associated infrastructure.
There are already 21 fully-occupied units at the site,which has a substantial waiting list.
The cash to build the new units forms part of a much larger £8.3m EU-backed scheme to create business facilities in Swansea,Caerphilly and Aberdare.
Caerphilly County Borough Council’s deputy leader Councillor Sean Morgan said: “This investment is excellent news for the economy of Caerphilly County Borough and, most importantly, it will bring much-needed employment opportunities to the Upper Rhymney Valley.
“The council is committed to regenerating its local communities and these new industrial units will deliver quality premises where businesses will be able to thrive.”
The Welsh Government’s Cabinet Secretary for Finance Mark Drakeford AM said: “I’m delighted to see EU funds being invested in projects to support sustainable business growth and create employment opportunities where they are most needed.
“These projects are part of our wider commitment to making Wales a more prosperous and secure place to live and work.”