The availability of a 28,000 sq ft advance factory in the IDA industrial park at Dundalk was one of the major factors in the decision by the US-based company, Tessy Plastics, to move to the town.
The announcement was made yesterday as the news that MKIR Panasonic was to close its Dundalk operation - with the loss of 360 jobs - was sinking in. The closure was confirmed last Friday to employees.
The new jobs were welcomed by the local TD and Minister, Mr Dermot Ahern. "Coming as it does within days of the Panasonic disappointment, this decision will be a boost for confidence in the area," he said.
Although it is based in an IDA-built advance factory, Tessy Plastics is not grant-aided by the authority. The company examined other locations in the east of the State, including the Navan IDA park, before deciding on Dundalk.
The proximity of the Xerox technology village in Dundalk also contributed to the town's success in securing the investment of £5 million, which will lead to 115 jobs in the next five years. It has been appointed a "preferred supplier" to the Xerox Corporation of injection moulding of ink tanks for its printer cartridges. The company and Xerox have worked together on the development of the product.
"It was influenced by our need to be close to one of our principal customers in Europe, Xerox Europe Ltd, which has recently commenced operations in Dundalk. Tessy has been a key supplier to Xerox in the USA for over 25 years," said Mr Henry Beck, president of Tessy Plastics.
Demand for the ink tanks is expected to grow to 116 million over four years.
The Xerox village is still under construction, on a 104-acre site bordered by the Dublin-Belfast road. It will manufacture colour toner, ink jet printer cartridges and heads, power supplies and electronic assemblies, and undertake software development.
There has been a total investment of £400 million, which will result in 2,100 jobs in Dundalk and an additional 2,000 at the company's Dublin operation.
Meanwhile, meetings have begun between SIPTU officials in Dundalk and management at Panasonic, which has committed itself to negotiating redundancy packages for the 360 staff.