The Irish knitwear industry is worth £55 million annually and employs more than 3,000 people, the Minister for Labour Affairs, International Trade and Consumer Rights, Mr Tom Kitt said yesterday.

He was speaking at the launch of a new marketing campaign by the Irish Knitwear Exporters' Guild in Dublin. Mr Kitt said the sector was often considered low-tech but had been revolutionised in recent years by highly advanced knitting machines and computer-aided design.

"With manufacturers from lowcost countries flooding the market with low-cost imports, the challenge to Irish companies is to survive in this intensely competitive market," said Mr Kitt.

The competition from Asian countries has prompted several of the knitwear companies to participate in group marketing initiatives.

According to the guild, the Irish knitwear sector has evolved from its traditional reliance on pure wool yarns to embrace other natural fibres such as linen, cotton and silk.

The guild's new marketing campaign, comprises a new logo, brochure, Website, promotional video and a targeted marketing campaign aimed at buyers at Showcase 1998, a large Irish clothing and craft fair which opens in the RDS on Sunday. The fair has attracted buyers from 23 countries who are expected to place orders worth more than £13 million.

The guild's new Website includes separate links to several Irish knitwear companies aiming to sell their designs on-line. The Website address is http:// www.ikeg.ie