An Irish company is set to share in a €60 million contract to supply snowploughs to the British Highways Agency and local authorities.

Romaquip, based in Birr, Co Offaly, is one of two European companies chosen to supply the highways agency with snow-ploughs, gritters and salt spreaders, used to tackle frozen conditions on roads during the winter.

The deal is worth a total of £45 million (€60.4 million) over four years, and is the largest of its kind awarded by the British agency. According to Romaquip managing director Ray Leonard, it could deliver a lot more than this over time, as the contract with the Highways Agency will also be made available to British local authorities that want to upgrade their winter road maintenance equipment.

Mr Leonard told The Irish Timesyesterday that Romaquip went through a long tendering process that led to it competing with 39 other companies from across the EU at the pre-qualification stage.

"There was a questionnaire that had to be carried in a suitcase, so that took some time to do," he said. "They got it down to six people at the final stage, and ourselves and Schmidt, a Germany company, were chosen."

Mr Leonard and his fellow director, John McKeown, founded the company in 1984 as demand for snowplough and winter road maintenance equipment grew in the Republic.

At the time, creating jobs by substituting Irish-manufactured goods for imports where it was feasible was a key element of industrial development policy, particularly when it came to supporting homegrown companies. Romaquip thus got the backing of Shannon Development.

State agency Enterprise Ireland now backs the company. Yesterday, its midlands director, Barry Egan, said the deal illustrated that "Ireland's manufacturing and engineering sector is continuing to lead and compete successfully in international markets".

Mr McKeown said yesterday that the company puts a big emphasis on research and development. It supplies Irish local authorities and the National Roads Agency.