Thirty new jobs are on the way to Dundalk at Cellulac.
The company is converting brewery facilities to produce biochemicals, specifically lactic acid and polylactic acid for biodegradable plastics.
It is the first company to do such a conversion.
The site is owned by the Irish Whiskey Company which is developing a distillery on the rest of the 13-acre site which was formerly owned by Diageo and used to brew Harp.