Australia's largest abalone farm is set to double its production in the next three years, creating dozens of jobs in the greater Geelong region.

The Perth-based Craig Mostyn group has bought Jade Tiger Abalone, which produced 220 tonnes per annum and employed 35 people at the breeding and processing facility at Indented Head, on Victoria's Bellarine Peninsula.

Chief executive David Lock said the company would invest $20 million in the facility and planned to double its production in five years.

"The demand is massive," he said.

Mr Lock said the company planned to hire at least 20 new staff over the next three years.

He said about two-thirds of their abalone was exported to Singapore and on to other parts of Asia, where Australian abalone had a reputation for being excellent quality.

"It signifies wealth, so people who are wealthy eat it and people who aren't so wealthy like to eat it because it indicates wealth," he said.

"It's a good luck omen, so in the Chinese new year it's often served in the special soup that's served at banquets."

Bellarine Peninsula 'perfect place' for facility

The abalone was called "jade tiger" because it has been selectively bred for its green shell and black and white stripes.

The chief executive of Jade Tiger Abalone, Anton Krsinich, has worked with the company and developed its breeding program over the past 11 years.

He said the abalone took three years to grow from an embryo, but once it was fully grown could be exported live within 36 hours or put in a can.

Mr Krsinich said Indented Head on the Bellarine Peninsula was the perfect place for the facility.

"We've got no factories or pollution around us and the site is a great site because it can pull staff from Geelong," he said.

"As the farm grows obviously we need more employees so it's critical that we're by a larger city."

With hundreds of workers set to lose their jobs in the Geelong region by the end of the year, Mr Krsinich said the $20 million expansion was great news.

"We will be a large employer in the region," he said.

Industry responding to Asia's demand for seafood

The farm relied on about 1,000 litres per second of cold water that was pumped from the bay to the farm, and back out again once it was cleaned.

Mr Krsinich said being close to the CSIRO's Animal Health Laboratory in Geelong was also important.

"It's a pioneer industry, so we're having to develop our breeding programs, we have to do research into nutrition and we're very heavily involved with the CSIRIO down in Hobart and in Geelong," he said.

Mr Krsinich said the aquaculture industry was among the fastest-growing agribusinesses in the world, because of the huge demand from Asia.

"It is growing very rapidly, but the farms have to have the economies of scale," he said.

He said there was room on the Bellarine Peninsula to expand the industry with other seafood.

"There's oysters, there's scallops, there's sea cucumbers, there's many species that could be farmed and should be farmed to be sustainable," he said.