UDG Healthcare, a drug distribution company, will spend €24m on boosting the capacity of its US packaging plants to meet growing demand in the market.
The group generated profits of around €71m in the financial year ending on 30 September which was an increase of 11% over 2013's €63.6m. The company experienced a 6% increase in sales from €2bn in 2013 to €2.12bn in 2014.
Around €23.9m ($30m) will be invested in its subsidiary Sharp Packaging Services's facility in Allentown, Pennsylvania in the northeastern US.
The company is expecting a 40% increase in production after a new plant is set up which is expected to start production in mid-2016.
Speaking about the need for this investment, UDG CEO Liam Fitzgerald said: "The investment is needed to allow us to continue growing in the US."
UDG further stated that its overall business in the US increased by 34% in 2014 and was expected to grow further by 40%. Sharp recorded profits of 8% ahead of 2013 which increased by 50% in the second half of the 12-month period.
A statement from the company said: "We continue to add further capacity to our packaging facilities in the US to meet the increasing demand in this market. The first phase of the current capacity expansion programme at our Allentown facility in Pennsylvania was completed earlier this year and provides 10% extra capacity.
"A second phase of expansion, which will add an additional 25% to our US capacity, will become operational in 2016 with an anticipated investment cost of €35 million."
