Signmax takeover by ACT to create 300 jobs

ACT Manufacturing, a US electronic connections company, said yesterday it had bought Signmax, a cable manufacturing business based in Dublin's Pearse Street.

The announcement signals a move by ACT into the European market that is likely to bring more than 300 new jobs to Ireland by the summer.

The value of the deal was not revealed, but ACT said Signmax had annual sales of "approximately $5 million" (£3.3 million). Company executives are expected to travel to Ireland next week to meet officials from IDA Ireland, and to scout for a new factory site to manufacture printed circuit boards.

"We're delighted," said Mr Aubrey Nuzum, who, along with Mr Peter McNally, founded Signmax in 1984 and watched it grow to 90 employees. "I will be staying on as managing director, and helping ACT's expansion in Europe."

"The acquisition of Signmax is an important first step in the development of our overall European strategy," said Mr John Pino, ACT's chief executive.

"The European market. provides many exciting opportunities for us, and we believe the addition of Signmax is an important part of our total manufacturing service offered to our existing and future customers in the United States and Europe."

Signmax is based in the IDA business park on Pearse Street and makes electronic cables for use in the computer industry, as well as specialised medical cables. The Irish firm is also 150 9002 certified.

The American firm said yesterday that its new acquisition could also provide conceptual design and product engineering.

ACT, based in Hudson, near Boston, Massachusetts, is a large contract manufacturer for the electronics industry. Last night's announcement represents something of a coup for the IDA.

According to news reports, the firm's turnover rose by 95 per cent last year, to $225.9 million (£150 million), with net profits more than doubling to $10.2 million from $4.5 million.

Industry sources said last night that companies in the sector often enter new markets by acquiring small companies on the ground. ACT was likely to establish a significant manufacturing plant in Ireland, with around 300 jobs, the sources suggested.