GlaxoSmithKline said it would invest €10 million in its plant in Sligo, saving it from closure and securing 120 jobs.

The company told staff this morning that the Stiefel plant, which had been due to close next year, will move to from producing pharmaceutical products to consumer and eventually skin healthcare products.

There will be some jobs cuts at the plant over the next two years, which currently employs 180 people, with a "gradual" reduction to 120. However, GlaxoSmthKline estimated there would be an additional 50 jobs added in 2014 as the plant improved skills and capacity.

The investment is being supported through IDA Ireland, and will help upgrade the site’s technical capabilities.

The Sligo plant became part of the GlaxoSmithKline network when the group acquired privately owned US skincare specialist Stiefel Laboratories for up to $3.6 billion in 2009. It has been operating there since 1975.

GlaxoSmithKline currently employs about 1,600 people across five locations in Ireland.