US medical device group Harmac is expanding its Co Roscommon operation, creating 150 new jobs at its plant in Castlerea. The privately-owned company, which already employs 100 people at the site, said yesterday that recruitment had already begun for the three-year expansion initiative.

Some 70 positions have already been filled, in manufacturing, technical, operative and administrative grades.

The €1.7 million expansion is supported by IDA Ireland, which, despite the downturn, has projected the creation of hundreds of new jobs throughout the economy early this year.

Though the job support body accepts that conditions in the international investment market are difficult, employment in the pharmaceuticals and healthcare sector grew by 4 per cent last year.

Welcoming the initiative, the Tánaiste, Ms Harney, said: "This is a significant development of Harmac's business in Castlerea and reflects very well on the success of the existing workforce. It is good news for Co Roscommon and the surrounding area as it will increase the sustainability of the Irish operation."

Harmac also has sites in the US and Mexico, producing medical and laboratory devices, components and sub-assemblies. Clients include Boston Scientific, Bausch & Lomb, Tyco and Johnson & Johnson.

The Castlerea operation was established in 1998 and the company said yesterday that it had achieved all its targets to date. The latest initiative, which comes after a separate expansion in 2001, follows the award of two major contracts to make two product ranges for two "major" international firms. "This will move the Irish operation into higher value product areas," said Ms Harney.

The company is already significant supplier to to the Irish and European operations of Abbott Laboratories.

Harmac's general manager, Mr Mick McEnroe, said: "The success of the Irish operation reflects very well on the skills and commitment of the Castlerea workforce. We are very proud of what has been achieved."