Tax advantages, the availability of a skilled workforce and its university research institute were the key reasons which made the Silicon products firm, Dow Corning, locate its first plasma R&D centre in Midleton, Cork, according to the firm's executives.

The centre, which will develop intellectual property originally researched at Durham University and the National Microelectronics Research Institute in Cork, will recruit 60 staff over five years.

Researchers will develop equipment and process technology for a range of sophisticated material coatings, says Mr Dan Futter, manager of Dow Corning's plasma programme- new business ventures.

"The type of coatings we will develop could be used to apply the glue in post-its or for applications in the textile industry," he says.

"The semiconductor industry uses lots of plasma coatings to build up fine layers of silicon."

The Cork centre will develop technologies which can be used at low pressure rather than at high pressure - the method used by most plasma equipment.

Dow Corning found one of the few places which had developed this technology was in Cork, where a spin off from the NMRC, Plasma Ireland, had developed similar equipment, says Mr Futter.

Dow Corning acquired the firm last year and began its plans to set up the centre in Midleton, Cork.

"The corporate tax rate here is very good, but there is another tax argument for locating here, in that royalties from intellectual property developed in Ireland do not incur tax," says Mr Futter.

The company plans to make an annual investment of about €3.3 million in the centre for the next five years, said Mr Futter.