Cosmetics packaging manufacturer Toly Products yesterday announced plans to invest €16.5 million in an expansion, just seven months after it laid off 84 workers.

The company plans to extend its cosmetic packaging portfolio and build a 5,500-square-metre multi-storey factory in Ħal Far following a financial agreement reached with the government which secures 60 jobs that were previously threatened.

The factory will cost €13 million to build and the company will invest a further €3.5 million in automation to attract new product lines this year and next, Finance Minister Tonio Fenech said.

However, he did not disclose the size of the government's financial contribution to this investment.

Toly chairman Andy Gatesy said that the new investment would allow the company to "once again increase employment levels by at least 10 per cent". Late last October the company, which currently employs 300 workers, laid off 84 people as it was hit by the global economic crisis. In recent months there were talks concerning the laying off of some 60 more employees. But through this investment these jobs should be safe. "Our industry has been hit by the slowdown, although not quite as badly as some of the other industries such as automotive, travel and household goods... In order not to cut back further we have been discussing with the government through Malta Enterprise," Mr Gatesy said.

The company, which has been in Malta for 40 years, is the fifth manufacturing firm to benefit from state assistance in an effort to safeguard jobs.

The Prime Minister, who visited the factory yesterday, welcomed the investment and commitment to Malta.

At a time of crisis, he said, it was important for the country to carry on investing.

He said there were positive signs that the international crisis was slowly subsiding, adding that through this sort of investment the government hoped to see the country at the forefront once the crisis is over.