Building materials giant CRH has announced plans to invest €200 million in expanding one of its Irish cement plants.

The group said yesterday that its local subsidiary, Irish Cement, intends spending €200 million on boosting the capacity of its Platin cement works in Co Meath.

The modernisation of the plant will increase its capacity by 40 per cent to 2.8 million tonnes from two million tonnes.

The work will include building a new kiln line and milling facility.

In a statement, CRH said yesterday that the expansion would mark its biggest ever investment in the Republic.

The new facility will begin production in 2008, and the building work is likely to create 400 extra jobs.

Platin has been in production since 1972 and is one of the main sources of cement in the State.

The factory is a major employer in Drogheda, the Co Louth town to which it is closest.

CRH has been producing cement in the Drogheda area since 1938.

For a long period, it was the Republic's sole producer of the material.

Commenting on the move yesterday, CRH chief executive Liam O'Mahony said the project was a major sign of the group's commitment to meeting the Irish building industry's long-term needs.

The group also said that the new plant would be energy efficient and use "best practice" emission standards.

CRH is the biggest quoted company based in the Republic.

It has operations across the US and Europe.

Earlier this year, it spent €1 billion on acquiring US asphalt producer Apac.

The purchase was the biggest in the plc's history.