The Tralee-based diesel engine components manufacturer BERU is to double its workforce with the creation of an additional 166 new jobs. One hundred and thirty of the new jobs will be created within three years and the remaining 36 within five years.

The expansion, which involves an investment of £16 million, will include the construction of a new 30,000 sq ft plant adjacent to the existing facility in the town's Monavalley industrial estate. BERU Manufacturing is a subsidiary of BERU of Ludwigsburg in Germany, which is a leading producer of automotive ignition systems and has a significant share of the world diesel glow-plug market. It will establish Tralee as the second, high-volume source within the BERU group of quick-start glow-plugs for diesel cars.

The investment, which will include the establishment of a small research and development section at the Tralee plant, is being supported by IDA Ireland and was announced by the Tanaiste and Minister for Enterprise and Employment, Ms Harney, who said that such a significant expansion by a company already operating in the town was a major vote of confidence in the people and support services of the area.

The company's annual spend on research and development is above the industry average of 9 per cent of sales. It says sales of £152 million (€193 million) in 1998 represented a 30 per cent increase since 1995.

The managing director of the Tralee plant, Mr Denis McCarthy, said the expansion was a compliment to the commitment of staff there and that the company was anxious to attract local engineers and technicians, working in other parts of the State or abroad, back home.

Members of Tralee Urban District Council have agreed to a material contravention of their development plan to allow for the construction of a major retail and hotel development on the outskirts of the town.

It is estimated that the project will involve 200 construction jobs and up to 600 permanent jobs on completion. The development will include a 100-bedroom hotel, car showrooms, a department store and supermarket, a builders providers and a sports pavilion.