A multi-million euro investment by major names in the pharmaceutical sector is expected to be announced this week, The Sunday Times has learnt. The firm is likely to employ over 100 workers in its first phase and be based in Ħal Far.

Sources close to the government confirmed that a consortium made up of a German manufacturing pharmaceutical giant and another from the Middle East had teamed up with local investors to set up the plant in Malta.

Finance Minister Tonio Fenech had to intervene directly with the investors during a four-hour meeting to secure the deal. The sources also said there was stiff competition from Greece for this investment, before senior officials from Malta Enterprise entered the negotiations.

"It is clear that Malta's membership in the EU and the adoption of the euro were the determining factors why the investors considered teaming up with the Maltese shareholders. Another strong argument in favour of Malta was the stability of the local banks in comparison with the global mess within the financial sector."

The investment is also expected to help the government to climb up the EU's research and development index, in which Malta trails.

The same shareholders are likely to announce another project in the pharmaceutical sector later this year.

Last December, the management of pharmaceutical company Actavis said it was looking to transform Malta into a regional hub for north, central and west Africa and beyond.