Guehring oHG Albstadt of Germany will invest €10 million in a Waterford factory for the coating of metal-cutting tools. It will employ 50 people over the next four years. Recruitment of operatives, technicians and engineers begins immediately, the Tánaiste, Ms Harney said yesterday.

Guehring is a world leader in coating technology and one of the largest producers of rotating metal-cutting tools. Its products are used in industries, including automotive, airline manufacture and mechanical engineering. Its clients include Boeing, Airbus, General Motors, Ford, VW, Daimler-Chrysler and BMW.

The Waterford centre, supported by IDA Ireland, will be based in a privately developed 16,000 sq ft building in the industrial park. It will be responsible for coating the full range of Guehring's tools, about four million initially, rising to more than six million at full production.

Ms Harney said yesterday: "The technology involved is new to Ireland and, as a world leader in its industry, Guehring will bring significant benefits to Waterford and the whole south-east region. It will offer high-quality employment opportunities and will work with the Waterford Institute of Technology on the R&D of new products."

Guehring, owned by the Guehring family since its inception in 1898, employs 3,300 people worldwide in 15 production centres and 26 coating centres. Its business is divided equally between special tools and standard tools. It has three R&D centres.

Guehring has been a leader in the development of arc and nano technologies, which have created hard coatings, increasing the life of metal-cutting tools.