The pharmaceutical company, Elan, is to establish a new sterile biopharmaceuticals plant at its Athlone facility, creating 120 jobs over the next five years.
The €35m investment, supported by IDA Ireland, will involve jobs in supervisory, engineering, laboratory and operative areas.
The new plant will eventually manufacture biopharmaceutical products for Elan and other companies.
Tánaiste Mary Harney welcomed the news, saying that other important investments involving 'major overseas corporations' were in the pipeline.
She said she hoped to make announcements on these over the coming weeks.
Elan Vice President Paul Breen said the Athlone site was now a key part of the company's overall strategy. The facility currently employs 438 people in manufacturing and developing drugs.
