A US supplier of back-office virtual payment services to the telecoms, financial services and entertainment industries, has announced plans to open an operation in Dundalk, Co Louth. Elaine Keogh reports.

The company said the availability of fibre optic connectivity to the internet was a significant factor in its decision to locate its European operations centre in the town.

Dermot Short, vice-president of the company's European operation, said Vesta intended to create 350 jobs in Dundalk over the next three years. Recruitment has already begun.

The Minister for Enterprise, Trade and Employment Micheál Martin yesterday announced the company's decision, with the support of IDA Ireland, to establish an operation in the town.

Vesta has its headquarters in Portland, Oregon, US and pioneered virtual commerce technology since it started business in 1995. For the last five years it has been acknowledged as one of America's fastest-growing privately owned companies. Its clients include AT&T, Cingular Wireless, T-Mobile, MCI and Sprint.

The Minister said the IDA's strategy of "targeting the north-east for international financial services for investments proved very successful last year with a number of significant companies locating here. Vesta will further compliment and strengthen this success".

Commenting on why Dundalk was successful in being chosen, Mr Short said: "There is fibre cable running all the way from Dublin to Dundalk and into the business park we will be located in and it was an enormous factor."

Ireland was identified by the company for its European centre and the first time the company visited Dundalk "it felt like the right choice", according to Mr Short. The proximity of Dundalk to Dublin airport - a 45 minute drive - was another factor as was the availability of a large labour pool including graduates from Dundalk Institute of Technology.

He said Vesta would recruit in a range of areas.

The centre will provide 24/7 customer support and well as crucial disaster recovery for the Portland operation. It will initially occupy one-third of a recently constructed 2,787sq m ( 30,000 sq ft) facility at the IDA Ireland Finnabair business park.

Dundalk Chamber of Commerce estimates that the investment will generate around €17 million in salaries - a figure that can be multiplied up to three times in terms of the value to the local economy.

"This is a red letter day for Dundalk," according to Mr Bill Tosh of the chamber.