A Norwegian computer company has withdrawn its proposal to invest in a new factory in Derry which could have led to the creation of 500 new jobs.

"Financial difficulties" are said to lie behind the decision by Sysdeco not to follow the US software specialists' Stream International onto a site in the city's Ulster Science and Technology Park.

The Norwegian company is believed to have taken the decision after failing to secure a major order to supply a mapping and information system to the Boston Globe newspaper.

Stream International opened its offices in January and now has over 100 employees. Employing 7,000 people worldwide, is one of the leading support organisations for computer software.