Galen Holdings will build a new manufacturing plant on a 55-acre site at Ardee, Co Louth, although the size of the plant and the employment levels have yet to be negotiated with IDA Ireland.

Speaking to The Irish Times after reporting a solid set of half-year results, Mr John King, chief executive of the Northern Ireland pharmaceuticals group, said it would definitely go ahead with a manufacturing project in Ardee. Plans had been delayed by Galen's current €330 million (£260 million) purchase of the Dublin-based pharmaceuticals group, Warner Chilcott.

It is understood the purchase agreement for the 55-acre site requires Galen to begin construction by February of next year at the latest.