Harney unveils 226 new jobs for Donegal

New projects in Co Donegal, unveiled yesterday by the Tanaiste, will create 226 jobs.

New projects in Co Donegal, unveiled yesterday by the Tanaiste, will create 226 jobs.

In addition, negotiations on two further projects with foreign companies, involving up to 300 jobs, are likely to be agreed soon.

Ms Harney said yesterday's announcements were "the first breakthrough" in the intensive promotion of Donegal by the IDA and Enterprise Ireland since Fruit of the Loom said in November that it would lay off 770 people in the county. The firm has now extended until July the closure date for three of its four Donegal plants, and the layoffs have not yet occurred.

Ms Harney was happy that a start had been made on delivering enterprises into the county, but said there was "still very significant work to be done to meet the development needs of Donegal and delivering jobs for its people".

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PacifiCare Health Systems will employ 150 people in an insurance processing centre in Letterkenny, its first processing operation outside the US. The California-based company is set to hire 50 people by December, and the remaining jobs should be created within two years.

In another project also supported by the IDA, Sterling Fluid Systems will create 16 jobs in a new information technology centre in Letterkenny. It will provide IT support to some 50 Sterling plants world-wide.

The remaining jobs will come in smaller Irish-owned companies around the county, with most of these in four plants in Killybegs. The companies include Gundry's, which will create 18 jobs in the production of fish nets. Sean Ward (Fish Exports) is investing in processing and cold storage facilities and will create 12 jobs, while Atlantic Marine Supplies of Killybegs will take on seven more staff in the manufacture of life rafts. Donegal Carpets, the hand-knotted rug and carpet maker, will recruit 10 extra staff.

In Lifford, Scafftex Systems will employ seven more people in the manufacture of scaffolding, and Carrymacarry Networks in Greencastle will create six jobs.

The two other major projects being negotiated by the IDA are believed to involve German engineering companies. An IDA spokesman was "very confident" that both these deals would be agreed. One is expected to be based in Letterkenny and the other in Milford, where a Fruit of the Loom plant closes in July.

The IDA spokesman said it was committed to marketing the three Fruit of the Loom factories, in Milford, Raphoe and Malin.

Ms Harney said the IDA had brought 12 overseas companies to Donegal in the past six months.

Later, she joined the Northern Secretary, Dr Mo Mowlam, in introducing a Ryanair route between the City of Derry Airport and London Stansted. The Tanaiste described this as a "massive boost to the north-west" and said the Dublin government would pay £1.5 million for runway improvements.