Two new IDA Ireland-backed projects in Tralee and Cork, involving total investments of £33.6 million, will lead to the creation of 475 jobs.

Yesterday the cabinet approved support for the establishment of a £26 million facility by German company Amann & Sohne GmbH in Tralee, Co Kerry.

The company is to establish a sewing thread production facility at the former Klopman textile plant in the town, which closed down in August last year with the loss of 150 jobs.

Recruitment will start immediately and will generate 400 jobs over the next four years.

"It will provide great opportunities for some of the workers at the former Klopman Textiles plant who lost their jobs," said the Tanaiste, Ms Harney yesterday.

The other 75 jobs at are the EMC plant in Ovens, Co Cork, where the company is establishing a £7.6 million website management facility and software development centre. The company already employs 780 people in Cork.

Amann & Sohne is the third large manufacturer of sewing threads in the world. It will purchase the 38,000 sq ft facility immediately and will operate a "streamlined production".

A senior production manager from the German parent company will be appointed initially to ensure a "smooth transfer of technology".

An Irish management team will be put in place as the project develops.

Amann will move into the building in November, with recruitment and training of the first 30 production staff beginning at the same time. Ms Harney said the Amann & Sohne was a "close match" in terms of the skills available after the closure of the Klopman plant.

"It is a great opportunity for many workers who thought they were facing a bleak future," she said.

The company employs 3,000 people worldwide in 11 production plants located in eight countries and had a turnover of £163 million last year. It produces premium threads for the automotive, sport, leisure and footwear industries worldwide. Among its customers are Volvo, Lear, Addidas, Levi Strauss and Hugo Boss.

Klopman at one time employed more than 1,000 workers, but accumulated losses of £12.7 million between 1989 and 1997 led to its closure, with the jobs moving to India.

The jobs at the EMC centre will be spread over four years, with 12 people in place by the end of this year. It will offer services to high-end web sites which need to be available continuously. "This is further evidence of the strength of the Cork economy; this project is of major significance for EMC in Cork and puts them at the heart of the global corporation's world wide activities," said Ms Harney.