Gateway 2,000's plans for major expansion may signal jobs growth

THE US computer company Gateway 2000 is planning a major expansion at its plant in Dublin.

The expansion should create several hundred new jobs at its European headquarters in Clonshaugh, which currently employs just over 1,000 people.

Gateway is building a 90,000 sq ft extension to its existing 197,000 sq ft factory. The company also intends to lay a new road at the front of the plant, and just over 400 new car parking spaces at the rear.

Gateway said yesterday that it took the decision to expand to meet demand for its products and "to properly cater" for employees. However, according to other industry sources, such a large expansion is likely to lead to a significant increase in employment.

A spokesman for IDA Ireland refused to comment on the planned expansion at Gateway 2000. He said the agency was "constantly talking to major clients" but declined to reveal whether it was having detailed negotiations with Gateway.

Plans for the expansion were lodged with Dublin Corporation in September, and Gateway received full approval two weeks ago. Clearing work has already begun at the site. The plans allow for a large new warehouse, a two storey office block and a second loading bay to increase Gateway's distribution capabilities.

The company has three separate divisions in Dublin manufacturing, finance and customer service, and sales and technical support. PCs made by Gateway in Clonshaugh are currently sold in Britain, Ireland, France, Germany, Luxembourg, Switzerland, the Netherlands, Belgium and Austria.

The company plans to expand into other European countries and as new markets are added, employment will grow as new sales, technical support and manufacturing personnel are recruited.

Gateway, which employs more than 8,000 people worldwide, uses the direct sales method to sell its products, and advertises heavily in specialist computer magazines. All advertisements have a free phone number which is connected to the Clonshaugh plant, and each computer sold is built to exact customer specifications.

The company has expanded dramatically since it opened its Irish operation with 125 staff in October 1993. Within a year Gateway had opened a 40,000 sq ft extension and employment had grown to 450.

Gateway, which was founded in South Dakota in 1985, last week reported a huge increase in after tax profits for the 12 months to the end of December. Post tax profits grew by 80 per cent to a record $173 million (£111 million) while turnover increased by 36 per cent from $2.7 billion to $3.2 billion.

Industry analysts expect the personal computer sector to grow by between 15 and 20 per cent this year, but Gateway has traditionally outperformed the market.

Gateway does not give separate turnover figures for its Dublin plant, but its Clonshaugh operation had a estimated turnover of £243.5 million last year, according to a survey of Irish based technology companies in the current issue of Irish Computer magazine.