Engineering firm Ocean Kinetics is to embark on a £1.1 million expansion project creating 21 full-time jobs.
The move will see the company expand its local workforce by nearly a third.
Seventy-three people are currently employed by the business, which is based at Gremista in Lerwick.
Extensive training and development of staff will occur over the next three years, as well as the installation of a new management information system.
Nearly half of the funding for the expansion project is to be footed by the Highlands and Islands Enterprise (HIE) which will contribute £420,000 towards the plans.
Managing director John Henderson said: “We have expanded our business since moving into our new building and this project aims to extend our operations and further increase our turnover, capacity and staffing numbers over the next three years.
“By providing an innovative one-stop-shop for engineering services, we will be able to offer a single source efficient and cost effective solution to clients. We also plan to further expand our work offshore and internationally.”
Katrina Wiseman, head of business growth for HIE in Shetland, said: “Ocean Kinetics have real ambition to grow the company and create fantastic employment opportunities in Shetland.
“They have an innovative approach to providing engineering services to a wide range of customers across the UK and beyond, with a strong focus on quality.”
Ocean Kinetics was founded in 1992 and has become a leading figure in engineering, fabrication, marine repair and manufacturing. The company has grown its operations into mainland UK and overseas.