The Northern Ireland pharmaceutical group, Galen Holdings, is believed to be one of a number of multinationals exploring potential investment opportunities at the Xerox plant in Dundalk.

The American photocopier giant has held discussions with several companies about investment or leasing opportunities at the facility as a result of its decision to exit the inkjet business.

Xerox Europe announced last month that 350 jobs would be lost at its 100-acre, $500 million (€572 million) development in Dundalk following the group's decision to close its small office, home office equipment business division.

The group had initially unveiled plans to create 2,000 jobs in Dundalk, mostly in the making of inkjet printers.

Industry sources say a number of organisations, including Galen and the Japanese group Fuji, have taken part in site visits to examine its potential.

Galen Holdings had previously announced plans to build a plant on a 55-acre site at Ardee in Co Louth. Details of the size of the plant and the employment numbers are subject to negotiations with IDA Ireland. It is understood that although Galen is determined to push ahead with the Ardee investment, it may now be interested in the Xerox site in Dundalk.

The Xerox campus offers investors an immediate hightech facility, including a high-spec clean room operation available at request according to industry sources.

Mr Joe Browne, general manager of Xerox, confirmed that the American group was evaluating the potential future of the site.

"We are now looking at every opportunity for this site both internally from a Xerox perspective because there are excellent facilities on site and from other external sources," Mr Browne said.

Xerox currently employs 500 people at its manufacturing operations in Dundalk and Mr Browne said he would not rule out further internal developments on the site.