NI Executive Minister of Enterprise, Trade and Investment, Sir Reg Empey, has announced an investment of £11.8 million (€19 million), backed by the Industrial Development Board, in the Japanese-owned seatbelt manufacturer TK-ECC.

The Minister said that although the investment in the east Belfast company might not lead to the creation of jobs, it would greatly improve the firm's overall competitiveness with European car manufacturers.

The investment is being supported by an IDB grant of £2 million. Sir Reg said it was an important signal from TK-ECC's parent company Takata, and a sign of continuing confidence in Northern Ireland as a location from which to serve the European market.

"Over the past ten 10 years, Takata has invested more than £40 million in its Belfast operation, ensuring that it remains the centre for seatbelt production for the European market. In addition, its policy of sourcing, where possible, from local suppliers, has made an important contribution to the local economy."

TK-ECC's managing director, Mr Walter Carruthers, said that the company had taken a strategic decision to move towards the production of a technologically advanced seatbelt system for customers in the mid to upper end of the market.

"We are investing in new equipment and tooling to facilitate improvements in product features and quality," Mr Carruthers said. "This is necessary not only to improve the competitiveness of our operation, but to ensure its viability. It will also help us to safeguard employment at the plant."

The Takata Corporation has an annual turnover of about $1.5 billion (€1.5 bil lion) with manufacturing operations throughout the world. It employs more than 9,000 people.