Benchmark the Texas-based contract manufacturer, said yesterday it would take over the assembly of Stratus computer products in Dublin. The move will see the transfer of more than 200 employees, and is likely to run in parallel to another investment by the company and the creation of 260 new jobs.

Earlier this week Stratus - now owned by Ascend which is itself being taken over by Lucent Technologies - said it was on the point of signing an agreement with a "major third party manufacturer" about outsourcing the companies range of products. Stratus has been manufacturing mainframe "fault tolerant" computer systems in the Republic since 1989, but is now concentrating on making new products with Ascend.

Mr John Culliney, the Stratus executive who is to be head of Benchmark's operations in Ireland, said last night the company had leased the former HewlettPackard building at Blanchardstown. He said Benchmark would concentrate on system assembly work for Stratus and would transfer more than 200 workers for this purpose.

A second Benchmark operation - manufacturing printed circuit boards for Ascend - is also planned. This project, which is currently being negotiated by the two companies and IDA Ireland, would see the creation of another 260 jobs.

Benchmark's president, Mr Donald Nigbor, said the firm was pleased to have the opportunity to work with "such a leading management and technology team from Stratus".

"Their system integration expertise expands our service capability and provides Benchmark a strong foundation in Europe. This expanded capability is part of our long-term strategy to provide our customers with a fully integrated solution," he added.