A £4.2m veterinary laboratory has been announced for Aberystwyth University.
The state-of-the-art facility in Ceredigion will develop tests and vaccines for animal-borne diseases that can lead to livestock loss and pass to humans, the Welsh Government said.
Environment secretary Lesley Griffiths made the announcement at the Royal Welsh Show.
The Vet Hub 1 project received £3m from the European Regional Development Fund.
A further £650,000 investment came from the Centre of Innovation Excellence in Livestock.
Ms Griffiths said: "This EU-backed investment will help tackle some of the great challenges of our time, food security, climate change as well as the Welsh Government and Aberystwyth University's long term focus on supporting animal health and veterinary science."
The university also has separate plans for Wales' first veterinary school.
The university's vice chancellor Prof Elizabeth Treasure said: "The facility heralds another step forward in the development of Aberystwyth as a centre for veterinary expertise.
"Our discussions with the Royal Veterinary College are progressing on proposals to offer a joint programme whereby veterinary science students at Aberystwyth can spend some of their time studying at the RVC and students from the RVC can come here to undertake aspects of their training, particularly large animal practice."