Ireland can play an important role in helping leading Japanese companies restructure their European divisions by offering them a location for more cost effective operations, IDA Ireland chief executive Mr Kieran McGowan told the Ireland Japan Business Association yesterday.

Mr McGowan pointed out that many of the major Japanese companies are now established brand names in the European marketplace and no longer need to retain the same manufacturing presence there as when they were first seeking to establish themselves.

The present problems in the Japanese economy will require many of these companies to reduce their costs and Ireland could help them through offering a flexible and cost-effective workforce if they chose to rationalise their European operations.

"I believe Ireland can be part of the solution rather than the problem currently affecting the Japanese economy, especially for large Japanese operations already well established in the European market place," he told the Ireland Japan Association Business Networking Weekend in Cork.

Mr McGowan revealed that there are currently some 5,000 people employed in 50 Japanese companies in Ireland. Some six new Japanese companies were attracted to Ireland this year and he expected a further 12 to come here over the next two years.

Bord Trachtala chief executive Mr Oliver Tattan told the association that around 400 Irish companies currently export to Japan. Exports range from software and services to recondition of aircraft engines, he revealed.

The Japanese economy was resolved to face its financial difficulties and fully confident that it would be able to overcome the challenges ahead and get its economy on the right track to a strong recovery, the Japanese Ambassador to Ireland, Mr Takanori Kazuhara, told the conference.

Mr Kazuhara, said that Ireland in the EU and Japan in Asia were at a crossroads, both facing common tasks such as the need to further liberalise world trade and ensure sustainable development of the planet, to tackle security problems in various parts of the world and find responses to different problems, such as the environment and rapidly ageing societies.