The US-owned American Power Conversion (APC) will invest more than €1 million in a European research and development centre in Galway city.

The Tánaiste, Ms Harney, has welcomed the announcement. IDA Ireland, which will support the investment, says that the centre was secured against "very stiff competition internationally".

No figure on new jobs has been given, but IDA Ireland's regional manager in Galway, Mr Jim Murren, said the quality of employment would be more important than the quantity.

"This will embed APC in Ireland,and is part of the IDA's effort to assist companies to move up the value curve,"Mr Murren said yesterday.

APC employs about 800 people in Galway, Castlebar, Co Mayo and Dublin. Six months ago there were fears of job losses at the company's Galway plant due to the global economic downturn.

Fewer than 20 jobs were eventually lost across the company's Irish operations, according to IDA Ireland.

APC provides products which keep computer networks alive and operating, and which protect communications and electronic equipment when the external power supply is unreliable or is cut-off suddenly.

The Irish development team's initial role in the new R&D centre in Galway will be to develop software which will ensure compatibility of APC's products with all relevant computer operating systems. The company's Galway-based software team has already played an integral role in the development of power protection software incorporated in Microsoft's Windows 2000 package. The team was also involved with APC's "flagship" consumer software, PowerChute Personal Edition.

"The hardware R&D will include teams with responsibility for R&D in a relatively new area of focus for APC, precision cooling products," Ms Harney said yesterday in a statement.

"This centre will play an integral part in developing the software and technology to keep APC at the forefront of its business and will create highly skilled jobs in Ireland."