IBM, which employs 2,500 people in its Irish manufacturing, sales and support divisions, opened the $250 million (£164 million) storage systems division of its operations at the Mulhuddart Techno logy Park in Co Dublin yesterday.

The plant, which is involved in manufacturing hard disk platters in "cleanrooms", has employed 210 people since it commenced operations in July, but will increase that number to 700 over the next 18 months. The Mulhuddart plant also has a microelectronics and server divisions. Mr Rory Caren, media relations manager, said yesterday that the worldwide storage business was buoyant despite the Asia crisis.

"To a great degree the market is being driven by the hunger of information on the Internet and e-commerce type products.

"That is what is generating such an optimistic outlook in terms of the product range that IBM is offering in storage," he said.