Councillors are being asked to approve Wholebake's plan for a second unit in Corwen, near to Ty'n Llidiart estate.
The company, which has a storage unit in Wrexham, makes natural food bakery products and already employs 120.
The planning committee report highlights concerns from Corwen residents about the site's suitability.
A planning meeting will decide whether to give the factory the go-ahead on Wednesday.
A company's plans to build a Â£14m factory to meet growing demand will lead to an extra 120 jobs, according to a Denbighshire council planning report.