Over the next 10 years, the Bermuda-based spirits company will redevelop the existing site in Parkhead, Glasgow where it will build new maturation warehouses and a blend centre.
New bottling lines and packing equipment will also be added, leading to an increase in jobs and a boost to the local economy.
Andreas Gembler, chief executive of Bacardi said the expansion was needed to cope with growing demand for whisky in emerging markets.
"Demand for Dewar's premium whiskies has grown significantly, especially in Asia and other emerging markets where the brands were launched only in the past three years," he said.
Bacardi bought the Dewar's brand in 1998 and since then has expanded the portfolio to include Dewar's 12, 15 and 18 Year Old, Dewar's Signature and Aberfeldy single malt.