THE Wellworth supermarket chain in Northern Ireland has purchased three sites in Cookstown, Dungannon and Downpatrick.
Dr Tony O'Reilly, chairman of Wellworth's parent company, Fitzwilton, told the conference that the £30 million investment was a vote of confidence by the company in the Northern economy and its people.
He said that recently 40 UK institutions invested in a £128 million Eurobond to refinance Wellworth and fund the future investment programme there.
"This is a major vote of confidence by the private sector in the future of Northern Ireland", he said.
Dr O'Reilly, chief executive and chairman of Heinz, also pointed to the recent announcement of a $30 million (£18.8 million) investment by that company in Dundalk, to allow the manufacture of Weight Watchers frozen meals for the British market. Employment at Heinz in Dundalk will rise to 465 by the end of next year. Annual sales are likely to rise to around $100 million.
He said he made these investments because he believed the return on capital would be better than he could receive elsewhere. "My fiduciary duty is to gel the best rate of return for my shareholders sentiment cannot drive these investments."
He also called on American businesses to put both parts of Ireland on their list to see what it offered as a manufacturing base for an EU market of 360 million people.
"The European market is still very attractive and every company with a global portfolio should have a dynamic business in Europe," he said.
Dr O'Reilly said there were a number of reasons to invest in Ireland:
. payroll cost is £14 per hour compared to the UK £14.56, Germany £32.06, France £19.46 and the US£17.50;
. Ireland's wage inflation is low and running below the UK average;
. Ireland is one of the few countries which meets the requirements for monetary union - this provides a stable environment on which to base any future investment;
. Ireland presents a very competitive utility cost environment with the third lowest electricity cost in the EU and the lowest cost for a three minute phone call to the US;
. corporation tax of only 10 per cent is applicable to manufacturing in Ireland until at least 2010.
