BARCELONETA, Puerto Rico - Drugmaker Merck, Sharp & Dohme Ltd. has announced a $65 million expansion of its pharmaceutical laboratories in Puerto Rico.

The company is building a new plant at its site in the north coastal city of Barceloneta and says the project will employ more than 200 people.

Gov. Luis Fortuno said Tuesday he hopes the plant will boost the local economy.

Merck, Sharp & Dohme is a British subsidiary of New Jersey-based Merck & Co. The company employs roughly 900 people between its plants in Barceloneta and nearby Arecibo.

The U.S. Caribbean territory has been a pharmaceuticals hub for decades, although the closure of several manufacturing plants in recent years have aggravated an island recession.