A Galway-based electronics manufacturing company is to recruit an additional 120 staff as part of an expansion plan.

Celestica Ireland, which was previously owned by Manufacturer's Services Ltd (MSL), currently employs 380 staff in automated manufacturing. One of its main contracts is the production of inkjet cartridges for Hewlett-Packard.

The expansion supports the introduction of a new product - a disposable power source, which is capable of providing direct power or battery charges for portable electronic devices such as iPods, mobile phones, and portable games devices.

The fuel cell is being manufactured for Medis Technologies, a US firm that will distribute and market it.

The Nasdaq-quoted firm says it expects to begin shipments from Galway in the first quarter of next year.

The portable fuel cell can provide power for up to 20 hours and will come with connectors for a range of products from major brands such as Nokia and Motorola, as well as a standard USB interface.

Karl Shaw, head of human resources with Celestica, said the new production line was entirely automated but still required a skilled workforce to operate and maintain it.

The development has been welcomed by Minister for Enterprise, Trade and Employment Micheál Martin, who visited Galway yesterday.

Mr Martin said that the additional 120 new jobs would include skilled, third-level educated positions in the fields of "quality, engineering, automation and chemistry as well as production".

"It represents yet another example of how the west of Ireland can attract and support the most sophisticated and leading edge investment," the Minister said.

The Galway plant was established in Galway in 2000 and acquired by Celestica, which is based in Toronto, Canada, in 2004.

Celestica previously had a major plant in Swords, Co Dublin, producing printed circuit boards and specialist products for the telecoms industry. It employed 1,000 staff at the height of the technology bubble but closed in 2003.