Up to 100 jobs will be created over the next three years in a new computer software and hardware testing facility in Ballina, Co Mayo, according to the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney.

As reported in The Irish Times on Thursday, the new plant will be based in a purpose-built premises, an "advance factory", which was paid for in part by IDA Ireland under a lease deal. Ms Harney said the IDA had approved a support package with Lionbridge Technologies in the US for the facility, which has state-of-the-art computer and telecommunications links.

Lionbridge already employs 100 people in Blackrock, Co Dublin, where it provides software localisation services to companies in Ireland, Europe, the US and the Far East. The development was "a major breakthrough" in the IDA's efforts to attract high-tech investment to the regions, and "a vote of confidence in the town and its ability to deliver a quality workforce", Ms Harney said.

The announcement will go some way towards deflecting criticism of the IDA's track record in attracting new investment to the regions, and to the west in particular. A spokeswoman for Lionbridge, Ms Sheena Dempsey, said the company would be employing computer engineers from the regional RTCs to carry out the testing functions.

"There is a very good FAS centre in Ballina that we will work closely with to provide a customised course specifically tailored to our needs," she added.

Meanwhile, industry sources yesterday played down suggestions that the Asahi textile plant in Killala may re-open under new management. The plant's closure was announced last July, following the failure of talks about a management buy-out, and the last of the 315 workforce is due to be laid off at the end of the year.

In recent months, six international textile companies have visited the Asahi plant to assess the possibility of a takeover.

One company is continuing in discussions with the IDA. Sources were pessimistic of a successful outcome, however, given the international difficulties of the textile industry.

In a separate development, the Tanaiste said an advance factory in Ballina was being "heavily promoted" by the IDA, "with a specific focus currently developing on one particular company".

Recruitment for the new Lionbridge facility is expected to start shortly.