SALES AT Galway-based CF Manufacturing's Czech operation have hit €20 million a year, according to the company.

CF manufactures server racks, data storage systems and related products for multi-nationals such as IBM and EMC.

The group this week opened a 2,000sq m extension to its manufacturing facility in the eastern European country, bringing the size of the operation to 8,000sq m.

This is the second extension to the plant since it began operations in 2003.

The factory is located in Velim, close to the Czech capital of Prague.

According to a CF statement, the Czech operation has a turnover of €20 million.

CF founder and main shareholder, John Flaherty, told The Irish Times recently that the eastern European business made €800,000 in profits last year.

Its parent, Galway-based CF Tooling, made €3.9 million in profits last year.

Its international business, including the Czech Republic and a plant in the Philippines, broke even.

Global sales were close to €60 million.

Mr Flaherty said that he pinpointed the Czech Republic as the location for its central European operations because of the presence of existing customers, potential new clients and infrastructure, amongst other reasons.

Irish Ambassador to the Czech Republic, Donal Hamill, opened the extension to the Velim plant this week.

Mr Flaherty and CF recently put together a rescue plan for car parts manufacturer, Iralco, which saved 400 jobs in the west-midlands.