The planned £25 million investment programme at the Ardagh glass bottle manufacturer will open up new growth opportunities for the company and secure shareholder value in the long-term, the chairman, Mr Peter Murray, has told shareholders. Speaking at the annual general meeting yesterday, he said the investment was essential for Ardagh to be competitive and to survive. The upgraded glass bottle manufacturing facility at Ringsend in Dublin will be fully operational by 1999.

Meanwhile, the group is currently trading at a satisfactory level, running ahead of the same period last year, according to Mr Murray.

Despite the investment programme, which will be funded from the company's own resources, shareholders will continue to be paid a dividend during this expansionary phase, he said.

"This investment will bring our manufacturing costs into line with the most cost effective plants in Europe, thereby enabling the company to continue competing effectively in its traditional markets."

Ardagh is aiming to win a 3 per cent share of the UK market by increasing its business with established clients. "The strategy now being pursued by the company will see us investing in an industry we know intimately and in which we have a record of success," Mr Murray said.

Some shareholders queried the company's decision to expand its facility at the valuable Ringsend site. Mr Murray stressed that the group had taken extensive advice and was satisfied that the cost of moving to another site would not be justified at this time.