A factory which tests and assembles bicycles is to create 100 jobs in Carlow town. The project, which is backed by IDA Ireland will supply bicycles into the Trek Corporation's European distribution centre.

Frames and other components will be supplied from the US and the Carlow plant will assemble and test the bikes.

Sales at Trek Corporation totalled £277 million last year. It hopes to increase sales in Europe through competitive pricing and shorter delivery times which it believes can be achieved from Ireland.