Cotton On is giving the Victorian economy a boost by creating 500 new jobs to ensure business operations remain in the region.

The fashion retailer is expanding its global headquarters by opening one up in Geelong.

Victoria Premier Ted Baillieu said this is part of the government’s plan to generate jobs, increase business investment and grow Victoria’s economy.

“Cotton On is a great Victorian success story – created in East Geelong in 1991 and now operating across the world,” he said.

“Since establishing its first store in East Geelong, Cotton On has rapidly grown to become an Australian household name.

“Having product and store design completed here in Geelong, Cotton On is a further endorsement of Victoria’s reputation as a centre for design and fashion excellence."

The 500 new jobs at Cotton On will increase total employment at the organisation to approximately 1,300 as part of a 15,000-strong workforce worldwide.

Cotton On chief financial officer Michael Hardwick said the support of the Coalition Government was a key factor in the decision to retain the global headquarters in Victoria.

“We are delighted to have partnered with the Coalition Government to make this happen,” he said.

Since it was established, Cotton On now has 1,000 retail stores in 11 countries, 650 of which are located in Australia.