Bausch + Lomb has promised 125 jobs with a €75m investment in Waterford.
With the expansion of the facility 150 construction jobs will also be created.
Last summer staff at Bausch + Lomb in Waterford were told there would be 200 redundancies, a 20% cut in pay and big roster changes.
Tough negotiations ensued and a compromise was reached with Valiant, the company owners, who promised they would invest in the factory.
The company has made contact lenses and other products at the site for 35 years.
In November, the company announced 50 jobs in a €41m investment and today, Minister for Jobs Richard Bruton said Bausch + Lomb is to invest €75m in extra manufacturing capacity, supported by the department and IDA Ireland.
By the end of next year, 125 jobs will be added to its workforce of almost 1,000.
