A US company specialising in the production of fibre optics equipment for the medical industry is to create 127 new jobs in Derry. Details were released yesterday as part of the trade mission being led by the US Commerce Secretary, Mr William Daley, to Northern Ireland and the Border counties of the Republic.

On the second day of the visit, US businessman, Dr Mahmud Awan, announced that his Masssachusetts-based company, Techman International, intended creating a new business in Derry. The operation - Fibre Optics Ireland Limited - expects to go into production with the creation of 127 jobs next year and hopes to increase its workforce to almost 400 when fully operational.

With sales offices in Boston, New York, London and Dubai, Techman manufactures fibre optic-based medical devices and communication systems for the US, European and Asian markets.

The trade mission, which includes representatives of 16 major US companies, arrived in Northern Ireland on Sunday.

Following meetings in Belfast and Derry the group moves on to Sligo today and will complete its trip with a meeting with the Taoiseach, Mr Bertie Ahern, tomorrow.

Speaking at the Derry factory of US computer giant Seagate Technology, Mr Daley also unveiled a five-point plan to help Northern Ireland industry.

He said his department intended establishing further trade missions focused on specific areas. He also planned to increase the number of staff in Northern Ireland to assist US business and hoped to develop partnerships between US companies and groups in Northern Ireland.

"You have everything Silicon Valley has: a highly educated workforce with a great work ethic," Mr Daley told the north-west business owners yesterday.

He said he would continue the American management business internship training programme.