IDA Ireland's chief executive, Mr Kieran McGowan, said yesterday that the organisation would direct a large amount of its efforts at winning information technology projects. It would also concentrate on healthcare and pharmaceutical projects.

The organisation also admitted that it was not optimistic that struggling computer manufacturer AST would continue its operations in Co Limerick.

The company has recently announced plans to cut its workforce worldwide by one-third. It currently employs more than 400 people in Limerick and is carrying out a "review" of the facility.

Mr McGowan said the IDA had been right to concentrate on winning technology projects as these had shown steady consistent growth over the years and were one of the key drivers of the economy. However, he said they were also subject to volatility. Companies which may be world leaders one year may find themselves under severe pressure within a few years, he said.

Mr McGowan said that, to combat the problem, the IDA would continue to try to get as many companies in the different technology sectors as possible to locate in Ireland.

It is also concentrating on convincing companies to add other operations such as design and software and research and development to existing operations to "root" them in Ireland.

Mr McGowan said the IDA was pleased with its success in attracting healthcare and pharmaceutical companies to Ireland. Last year, such companies created in excess of 1,500 jobs. He said the organisation would continue to target these companies which had no problem about locating outside Dublin, and provided "excellent longevity".

Mr Dick Ryan, the IDA's head of planning and development, said he was not optimistic that AST would remain operating in Ireland. However, he said the employees should have no problem finding alternative employment in Limerick.

Mr McGowan said the IDA was reviewing its policies following the announcement that Seagate Technology, a disk drive manufacturer in Clonmel, is to close with the loss of 1,100 permanent and 300 temporary jobs. He said the IDA wanted to avoid over-dependency on one large company in one area. "In an ideal world you would have two or three medium-sized companies in one area," he said. However, he admitted that it was very difficult to turn down projects of Seagate's scale.

Mr McGowan said the IDA's policy of encouraging companies to locate in regions outside Dublin was succeeding and its success would be more apparent in next year's figures.

He warned that some regions have "unrealistic expectations" of winning projects. Regions needed suitably zoned land, backup services, including legal and accounting professionals, and proper infrastructure, he said.

For many multinationals, especially those based in Europe, visiting a site meant only having to spend one day away from company headquarters. They wanted easy access in and out of their subsidiaries, he said.

This would mean constant improvements in roads, shipping and airports, he added.