The announcement by Seagate Technology of worse-than-expected operating losses for the second quarter, has exacerbated existing doubts over the multinational's plans to expand its operation in Derry and establish a new plant in Cork.

Seagate, which last month announced the closure of its manufacturing plant in Clonmel, Co Tipperary, with the loss of 1,400 jobs, blamed the losses on severe pricing pressure from Asian markets and weaker-than-expected disk drive demand.

"Revenues from drive operations were significantly less than previously anticipated and are currently estimated to be approximately $1.5 billion (£1.1 billion) for the quarter," the company said.