German drugs group Altana has announced it is to open a factory in Cork which will employ approximately 150 people.

The group, which is quoted on the New York and Frankfurt stock exchanges, is in the final stages of negotiations with IDA Ireland to build a factory on a greenfield site in Carrigtwohill, Co Cork.

The planned €70 million investment was announced yesterday when the Altana group released final figures for 2002 showing earnings before interest and tax of €538 million, a 27 per cent rise on profits in the previous year.

The group announced the Cork project as part of its investments programme for 2003. An "ultra-modern Roflumilast tablet-producing factory in Cork, Ireland" is to be the company's largest investment project for this year.

Roflumilast is a drug to be used for asthma and respiratory diseases. The group hopes to receive approval for the sale of the drug from European and US drugs approval agencies later this year.

The Germany-based group was listed on the New York stock exchange during 2002. Since September 2002, the group has been listed on the Dax-30 index of the 30 strongest German shares. It has been on the Frankfurt exchange since 1977.

Altana sales rose by 13 per cent, to €2.6 billion, during 2002 and the company has forecast an increase in sales and operating profit for 2003 of at least 10 per cent.

One of the group's major successes is the ulcer medicine pantoprazole, with its sales of the drug rising to approximately €1 billion during 2002. The planned Cork plant will be Altana's first venture in the Republic.

The multinational pharmaceutical sector in Cork has been doing well despite the global downturn which has hit other sectors and the Altana announcement is the latest development in this ongoing success. The sector is seen by the IDA as one of a small number of sectors which it expects will create thousands of new jobs during 2003.

The US is the single most important market for Altana, providing sales worth €684 million during 2002. Altana also sells in Asia and throughout Europe. Sales in Germany were up just 2 per cent in 2002, to €490 million.

The Altana group comprises pharmaceutical and chemical subsidiaries.

The pharmaceutical arm of the group, Altana Pharma, is the predominant part of the group and has approximately 10,000 employees around the world.

It is one of Europe's most profitable pharmaceutical companies, with a return on sales of about 20 per cent.

With its headquarters in Constance, Germany, Altana Pharma AG employs over 7,500 people to research, manufacture and market drugs. It concentrates on pharmaceutical research in the fields of gastroenterology, respiratory and oncology.

The other major element of the group, Altana Chemie, is involved in the production of additives, coatings, sealants and electrical insulation.

According to the group's website, it views itself as having a social as well as a financial role.

"Entrepreneurial activities for Altana are not restricted to the economy; rather, they constantly interact with cultural and political factors."

Continuing the tradition established by its first chairman, Mr Herbert Quandt, Altana supports and promotes cultural, social and scientific activities in a number of ways," according to the website.