Wellman International Limited is to invest EUR5m (US$6.7m) in an upgrade of its operations in Mullagh, Co Cavan.

The investment will see Wellman, a subsidiary of Thai fibre producer Indorama Ventures, install new technologies over the next three to four years as part one of a phased upgrade.

Wellman secured funding from the Department of Jobs, Enterprise and Innovation through IDA Ireland for the upgrade, which is designed to transform the operation from a "commodity non-woven provider to a hygiene and technically focused supply base aligned to the established markets for personal care".

The site produces high quality polyester staple fibres, made primarily from post-consumer recycled material for various end-uses. It employs around 260 staff.

Wellman managing director Frank Gleeson said the investment comes as the company celebrates its 40th anniversary.

"[The investment] will enable us to manufacture a higher value product portfolio and maintain our current level of employment on site. I would like to acknowledge the significant contribution of the workforce who continue to deliver focused effort, commitment and flexibility through this transformation process."