Employees and Leixlip community are delighted at news

Reaction: "Intel is the best thing that ever happened to Leixlip by far," was the enthusiastic reaction from one local man to the news that the computer chip manufacturer plans to invest €1.6 billion in its Leixlip plant and create around 400 jobs.

"If they spread the money around and if it creates more employment, it is very good news for Leixlip," Mr Eamon Pidgeon, from Riverforest, Leixlip, continued.

"People here have great respect for Intel and I have never heard a bad word said about them," explained his wife, Patricia .

For Mr Des Murphy, from Avondale, Leixlip, the investment is a clear indication of the multinational's commitment to the area: "They are here to stay, which is welcome news."

Meanwhile, the local business community warmly welcomed the Tánaiste's announcement.

Development of this magnitude is "magnificent news" for Leixlip, according to Mr Gerry Leahy of Leahy Property Consultants, Main Street, Leixlip.

"Intel has been a mainstay of employment in north Kildare and west Dublin for 10 years now. This announcement underpins the fact that Intel will be here for some considerable time."

However, the development will increase demand for housing and increase prices , he said.

"If the past is anything to go by, the development will be reflected in an increased demand for housing. This year we predicted an 8 per cent growth in property prices in the greater Dublin area. This development will bring it to 10 and 11 per cent."

Mr Christian Schmelter, chairman of the Leixlip Traders Association and manager of two local hotels, said yesterday's news was "very positive and very encouraging news" for the village. The extra 400 workers at Intel will mark a "huge increase in the footfall in the village" and would have a very positive impact on trade.

At Intel itself, employees interpreted the news as the indicator of long-term job security. "It means we are here to stay," Mr David Sweeney declared.

Mr Ricky Dalton, who has been working with Intel for four years, said he and his colleagues were delighted with the announcement. "It gives a whole new light to the future. It shows we have a future."