A total of 155 jobs are to be created by a US firm in Donegal town at the former Hospira pharmaceutical plant, it was announced today.
The IDA-backed investment will see Abbott Group take over the factory, securing work for scores of local people.
Last August, Hospira announced plans to close the facility within 18 months, with the loss of more than 550 posts.
The community was devastated by the loss of so many well paid jobs.
Abbott, which employs 60,000 people in 60 countries, plans to use the factory to manufacture care products for diabetes sufferers.
It will make an initial investment of €36 million with support from IDA Ireland.
Minister for Enterprise and Employment Martin said the Government had made a commitment to the people of Donegal town that every effort would be made to attract investment from a company the calibre of Abbott, requiring the skills and expertise available in the locality.
"Today's news is a result of the combined effort of IDA Ireland, the local authorities, and the community, who all worked tirelessly to help us deliver on that promise," he said.
Minister for Agriculture and Food Mary Coughlan, who is Fianna Fail TD for Donegal South West, said the news represented a tremendous boost for a region that had suffered an undue number of job losses in its manufacturing base.
"The arrival of a well-recognised world leader in the provision of health care products was particularly reassuring in light of Abbott's already strong connection with the North West," she said.