Hewlett Packard (HP) plans to create 120 new jobs in the Republic in an expansion of its financial services operation here. Barry O'Halloran reports.

Hewlett Packard Financial Services said yesterday that it will centralise its European, the Middle Eastern and African businesses to its base at Leixlip, Co Kildare, which will be the division's new headquarters.

The move means that numbers employed by HP Financial Services in the Republic will increase to 360 by the end of the year.

Managing director Paul Sheeran told The Irish Times yesterday that the jobs would be "high value". Most of them will involve negotiating and managing leasing and credit arrangements for businesses and organisations purchasing HP equipment and systems.

HP's financial services division is the second-largest in-house credit company in the world. In 2005, it had pretax profits of €50 million. According to an HP statement issued yesterday, it has assets of $8 billion (€6.7 billion).

It provides leasing and credit for purchasers of HP equipment and systems.

Mr Sheeran said that it has been expanding its businesses and product range since its foundation in 1998. He pointed out that, initially, customers wanted straightforward equipment leasing arrangements. But in recent years they have also been seeking credit to cover payment for software, consultancy, training and customer service.

The company is a wholly-owned subsidiary of HP and is funded by its parent and external sources.

Mr Sheeran said there were a number of reasons why the group decided to establish the company's European headquarters in the Republic. "It will allow us to maximise the benefits of our banking licence," he said. "It will allow us to improve our product range and give us access to European markets while operating under the umbrella of one regulator."

He pointed out that if it were to operate from bases in a number of countries it would need a banking licence for each jurisdiction. By basing it in the Republic, it needs just one licence, from the Irish Financial Services Regulatory Authority, and it can still offer credit in other jurisdictions.

Another attraction for the company was the Republic's low corporate tax rates, which will allow it to manage its funding requirements and tax liabilities more efficiently. He added that IDA Ireland's support was a key factor.

Mr Sheeran said the quality of workers available in the Republic was high.

HP already employs over 4,000 people at its base in Leixlip. Mr Sheeran said that adding the financial services headquarters to the facility was a natural extension of its existing activities.