Shares in bathroom suite manufacturer Qualceram Shires jumped as much as 3.5 per cent yesterday after the company confirmed that it was seeking a buyer for its facility in Arklow, Co Wicklow.

The company declined to say how much it expected to receive for the 13-acre site, which is designated a waterfront development zone and as a result is suitable for hotel, recreation and residential purposes. Analysts estimate that it has the potential to fetch as much as €4 million an acre.

Yesterday's announcement follows confirmation that Qualceram had agreed to buy the remaining freehold it does not already own from Arklow Harbour Commissioners for €2 million. It first announced its intention to acquire the remaining freehold, sell the site and seek new premises, last September.

Since then, shareholders have been awaiting an update. Analysts said that while investors would be pleased with yesterday's news, the focus would now be on how much the company receives for the land and what it decides to do with the proceeds.

The deadline for tenders is expected to be June 7th.

The sale of the site and the move to new premises is expected to generate significant efficiencies for Qualceram, which operates out of several buildings on the Arklow site.

The shares fell back slightly, closing up 2.5 per cent, or five cent, at €2.05, although volume was relatively light.