Firms to sign multimillion euro deals on China trip

Irish companies and third-level colleges will sign more than 25 deals, worth tens of millions of euro, with Chinese partners this week in the biggest trade mission to leave from the Republic.

Two firms, including food group Kerry, are poised to open new factories in China to take advantage of the extremely low cost of manufacturing goods in the world's fastest-growing major economy.

The mission, led by the Taoiseach, Mr Ahern, will visit Beijing, Shanghai and Hong Kong, and focus on a range of industries such as software, food and manufacturing. It will also target the fast-growing education sector in Ireland, which is worth about €300 million per year.

Chinese students are now the biggest overseas entrants to Irish colleges. Up to 25,000 Chinese attend English language schools in the State and a further 2,900 students attend third-level colleges and universities.

Twenty-nine Irish third-level institutes and private colleges are taking part in the trade mission, which will be joined by the Minister for Education, Ms Hanafin.

At a briefing in Beijing yesterday, Enterprise Ireland, the State agency responsible for boosting international trade, said it wanted to double the number of Chinese students attending third-level colleges by 2008.

However, it warned that it would be a difficult year for English language schools in the Republic following planned changes to the visa system.

The Minister for Justice has proposed, from April, restricting the working rights of students on short-term courses and reducing the length of time they can spend in the Republic.

Mr Frank O'Connor, manager of international education at Enterprise Ireland, said these changes would make it a "rough year" for English language schools but he said genuine schools would adapt and survive.

"It is very important that we go for the quality end of the education market," he said, adding that third-level students pay about €8,000 per year for courses.

A number of Irish colleges on the mission are expected to sign joint agreements with Chinese colleges which will enable students to split their studies between China and the Republic.

"This has obvious advantages for Chinese students because it is cheaper for them and it means their degrees will be recognised back in China when they return to take up employment," Mr O'Connor said.

Enterprise Ireland said it hoped that Irish firms would double annual exports to mainland China within three years, from €48 million to €100 million.

The agency is also advising firms to take advantage of China's low cost of production. Several Irish firms have set up factories in China, including appliance manufacturer Glen Dimplex and PCH, an electronics component supplier.