A Newry waste management company and a firm from Denver, Colorado, which is involved in the same line of business, are to form a new joint venture company to manufacture water and waste treatment systems for European markets.

The agreement, between FM Systems of Newry and the American firm, Schloss Engineered Equipment, was signed during the visit of a delegation of US companies to Northern Ireland, organised by the US Department of Commerce.

Led by the US Acting Assistant Secretary for Trade Development, Mr Ellis Mottur, the delegation included representatives from 15 US companies from a range of industries, including information technology, construction, electronics, and environmental and health technology.

The mission is the fourth to visit Belfast over the past two years, and is part of a initiative by Belfast City Council and the US Department of Commerce to build relations and encourage investment.

The new joint venture company, FM Schloss, will be owned by FM Systems and Schloss Engineered Equipment. Mr Mottur said that it would lead to the creation of 70 new jobs in Northern Ireland over the next 12 months.

"I am confident," he said, "that this will be the first of many business agreements between US and Northern Ireland companies participating in the matchmaking meetings that we are sponsoring in Belfast and Derry. Through joint ventures, strategic alliances, technology transfers, and other business arrangements, they can tap the tremendous opportunities in the European market, with its 360 million consumers and combined GDP of $7.3 trillion."

The sales and marketing director of FM Systems, Mr Kevin Fitzpatrick, said that the agreement was in line with the company's business strategy to develop its range of products and increase its export sales.

"By combining the experience, technology, and products of two companies," he said, "we will be able to offer existing and potential customers the most comprehensive portfolio of equipment and services available in Europe."

The president of Schloss Engineered Equipment, Ms Kristy Schloss, said the company had decided on a joint venture after carrying out extensive market research in Europe. This showed that there were significant opportunities for the company's range of water treatment products.

"Water treatment systems are bulky and costly to transport," she said. "A joint venture with an established and successful company such as FM Systems offered us the most cost-effective and efficient way of developing business through Europe."