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LAVAL, Que. (CP) - Shire Pharmaceuticals Group PLC will invest $28 million to build a new global vaccine research centre in Laval, where the British-based multinational company already has a research facility.

Dr. Randal Chase, president of Shire Biologics, said Monday that federal government support through Technology Partnerships Canada was a significant factor in advancing the company's presence in Canada. Shire is eligible for $5 million in government money under the partnership program.

"Our decision also serves to underpin Shire's strategic aim of becoming an even more significant player in the global vaccine market which is expected to grow from $5 billion annual sales to more than $10 billion sales within the next five years," Chase said in a release.

Shire Biologics currently provides about half of the influenza vaccine used annually in Canada.

The core of Shire's operations in Canada is the former BioChem Pharma Inc. of Laval, taken over by the British company in early 2001.

Shire's Laval site is already home to its therapeutic research centre and. Work on the addition is to begin immediately, with completion planned for mid-2004.

Shire shares (TSX:SHQ) traded at $31.47 on Monday morning, off 29 cents.

Shire, moving to expand its vaccines business, recently announced an agreement to supply its Fluviral influenza vaccine to Berna Biotech, for sale in international territories excluding Europe and North America.

In return, Berna Biotech will supply its hepatitis B vaccines to Shire for sale in Europe.

Shire also has a marketing partnership with Baxter which involves the company's meningitis C vaccine in Canada.