CHEMICALS: A total of 60 jobs will be created over the next two years in Clondalkin, Dublin, following the decision by Japanese company Takeda Chemical Industries to locate a bulk pharmaceuticals plant at the Grange Castle business park.

Around €80 million will be invested in the construction of the factory on a 20-acre site. Construction is expected to take 18 months with the plant operational by 2004. It will make drugs for clinical trials as well as the diabetes drug Pioglitazone for export to the US and Europe.

The new plant, which is the first bulk pharmaceuticals facility to be constructed by Takeda outside of Japan, is expected to employ a range of employees with skills mainly in management, R&D, engineering and production.

V"The construction of the new bulk plant in Ireland is a vital step on the way to putting in place a global business structure," said Mr Shozo Nakamura, managing director of Takeda and general manager of the pharmaceutical production division. "It will enable us to meet future growth in demand for our products, and ensure the stable supply of those products to the US and European markets."

Mr Nakamura said Takeda's Irish operations - it already has a plant in Bray, Co Wicklow - would form its strategic production base for the EU and US markets.

Mr Nakamura said the construction of the Grange Castle plant would be the first of many investments on the site. He also said the company planned a second expansion of its Bray plant.

He said Grange Castle won out over other sites in Europe and the US, and highlighted the business infrastructure, IDA Ireland strategy, the high skills of the workforce and the favourable tax jurisdiction as key reasons behind the decision to locate in the Republic.

But he warned that rising inflation and a tightening labour market could hinder future investment in the country.