The plant will provide a major boost to the west coast of Scotland economy, creating 55 full time, permanent jobs upon completion.
Construction of the plant will take between a year and 18 months and the company believes it could be up and running as early as 2018, depending on the planning process.
Ben Hadfield, managing director of Marine Harvest Scotland, said: “We are delighted to have found a site which sits at the heart of our operations – one that is already an industrial site but which has not been fully utilised for some time.
“We would like to have the chance to bring it back to life and provide well paid jobs, as well as taking the opportunity to produce our feed in the most sustainable way.
“This is a large investment in Scotland and the development of a feed plant here is part of our overall drive to become a more efficient and sustainable business.
Around four acres of the site will be used to accommodate the buildings which will include the processing plant itself as well as raw material storage silos, product storage and packaging, a loading area and car parking. The existing pier will need to be extended.
The company will now start consultation with the local community as part of the planning application process. They plan to hold public meetings in Kyleakin and Kyle in April.
Public exhibitions are to be held in Kyleakin Village Hall on Monday 18 April and Kyle Free Church of Scotland Hall on Tuesday 19 April. Both exhibitions will be open from 11am until 8pm.
These initial exhibitions will explain the work the company plan to undertake to prepare their planning application.