Shannon Development set to win over 500 jobs

More than 500 new jobs are on their way to Shannon, Co Clare, through the expansion of two existing companies and the establishment of a US e-commerce firm in the Shannon Free Zone.

Minister for Enterprise, Trade and Employment, Micheál Martin yesterday announced 285 new jobs in existing companies, Halifax Insurance Ireland and Sykes Enterprises in the free zone.

Though not expected to be officially announced by Mr Martin for a number of weeks, The Irish Times has learned that a third company, US e-commerce firm Digital River has recently established a European subsidiary in the free zone that is expected to generate over 250 new jobs in Shannon.

A Shannon Development spokesman yesterday declined to comment on the presence of Digital River in the free zone. However, he did say: "Further significant job announcements are expected in the near future for the Shannon Free Zone."

Currently in temporary accommodation in the free zone employing a small number, Digital River, which builds and manages online businesses for more than 40,000 software manufacturers, distributors and online retailers, has already announced its presence in Shannon on its company website.

The company is also establishing a European subsidiary in Luxembourg and Digital River CEO Joel Ronning said in a statement on the website: "The launch of our European subsidiaries represents an important part of our long-term strategy to extend our global footprint."

In his announcement yesterday, Mr Martin stated that the expansion by Halifax Insurance will provide 185 new jobs, while SYKES will create up to 100 jobs over the next five years.

The new jobs at Halifax - a subsidiary of HBOS, one of the UK's largest banks - will bring the total number employed at the firm to 440. Mr Martin said: "This is a tremendous boost for Shannon."

The announcement yesterday on the expansion by Sykes - which provides outsourced customer contact management solution - comes 19 years after it first established in Shannon.

The jobs coup by Shannon Development comes against the background of uncertainty over its future.

It is now almost one year since Mr Martin announced that the agency would be stripped of its enterprise functions in the Free Zone which would be transferred to the IDA.

Fine Gael TD Pat Breen said that the jobs announcement "raises questions over the Government's wisdom in stripping Shannon Development of all enterprise support functions and transferring them to the IDA and Enterprise Ireland".