3COM, the global manufacturer of computer networking products, has announced a $30 million (€29.3 million) expansion of its Blanchardstown facility, with the creation of 250 jobs and a new supply chain integration centre.

The new jobs will be introduced in the manufacturing area over the next four years and will be primarily aimed at graduates. The expansion will bring 3Com's permanent workforce in Ireland to 1,400 and its investment to date here to $180 million. Making the announcement, the Taoiseach, Mr Ahern, commended 3Com for its growth since it established here in 1991, with a jobs target of 175. "The arrival of the Internet and new communications technologies is transforming supply chain management. We believe that Ireland is an ideal location for this type of activity and 3Com's decision will raise awareness of the advantages we can offer in this area."

The new facility will cover 170,000 sq ft and integrate the activities of the two existing manufacturing buildings. Customer orders will now be processed through a new build-to-order process.

According to Mr Donal Connell, general manager of 3Com Ireland and recently appointed chairman of Blanchardstown Institute of Technology: "This is a tremendous vote of confidence in Ireland by 3Com and I would also welcome the great support we have received from the Government through the IDA."

Separately, Mr Ahern told The Irish Times that the policy of taxing share options at the higher rate of tax was currently under review, and would be addressed in the Finance Bill early next year.

Mr Ahern added the Department of Finance had been very impressed by a number of submissions from the software industry, and it was likely there will be some change in the policy in the new year.

Last week the Irish Software Association issued a statement expressing "extreme disappointment" at the lack of any commitment by the Minister for Finance to reduce taxation on share option schemes despite the "clear and well argued economic benefits".