The Smartply facility in Belview is to be upgraded.
€59 million is to be invested in the upgrading of its current plant and a new innovation centre is to be developed.
The Minister for Agriculture, Food and the Marine, Simon Coveney, TD, said over 400 construction jobs will be created.
Mr Coveney said: "It will allow for the development of new and innovative products and is tangible evidence that the company is focused on growth and meeting the demands of its customers.
"The downturn in construction had a major negative effect on Smartply and the markets that it served."
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