Israel's tentative economic recovery, strengthening currency and recent interest rate rise could bring good news to Waterford.

Generic drug maker Teva Pharmaceuticals, Israel's largest non-military exporter and one of Waterford's biggest employers, is considering moving more of its manufacturing to foreign locations to counteract the rise of the shekel against the dollar, which is expected to continue after Israel's central banker, Stanley Fischer, raised base interest rates last week.

That means Teva's Waterford plant, which employs 730, could be in line for an expansion if the company's executives make good on the promises.

Eyal Desheh, Teva's chief financial officer, said in June that the strong shekel may lead his company to rethink where it produces drugs. Now the shekel is expected to appreciate further against the dollar as a result of Israel's improving economy and tight fiscal policy.

Teva, the world's largest generic drug maker, has plants all over the world, but Waterford is one of its largest outside Israel.

Teva sources in Waterford were not authorised to comment on behalf of the company, but it is understood no decision has yet been made on production changes yet, as the interest rate rise occurred only last Tuesday.