A LURGAN company is spending £1.2 million on the development of a range of new products, and aims to increase its sales in overseas markets.

Polypipe (Ulster), which was set up in 1985, is part of the Doncaster based company Polypipe plc. It employs around 160 people at its Northern Ireland plant making injection moulded PVC pipe fittings and extruded PVC/polyethylene pipes for use in the construction, water, and agricultural industries.

Polypipe (Ulster) managing director, Mr Henry White, said the investment was a significant one for the Lurgan plant.

"The new products will help us to retain our price competitiveness and to expand sales by enabling us to offer contractors cost saving packages, while developing further business. Although our industry is very competitive, we have been growing steadily over the past three years, providing a solid foundation for the development programme which we are now implementing."

The investment, which is expected to result in the creation of 12 new jobs by the end of 1998, is being supported by a grant of £220,000 from the IDB. The agency's deputy chief executive, Mr Mike Bohill, said the company was introducing a new business strategy designed to increase its share of the construction market in the UK. Ireland, and other European countries.

Mr Bohill said. "In addition, new injection moulding equipment will provide the additional capacity the company needs to take on more orders."