IDA Ireland has regarded the absence of Xerox in the Republic as a missing piece of its industrial development jigsaw. It had tried for 25 years to persuade the company to come here.
Sources said that shortly after recent negotiations began, Xerox ordered a massive programme of cutbacks involving 9,000 job losses worldwide. But the IDA team persuaded the US firm that a move to Ireland would form "part of the restructuring solution rather than add to the problem".
After what the Tanaiste, Ms Harney, described as "long and tough" negotiations, in which she was personally involved on a trip to the US in March, Xerox is committed to the 2,200-job project and promises 2,000 of these in the next three years.
It plans to acquire a 100-acre land bank in Dundalk and to begin building this autumn to accommodate manufacturing, including colour toner production, logistics and technical support. The build-up of jobs in Dundalk will be "driven by the marketplace", but will be a maximum of 1,450 people.
In Blanchardstown it will locate a shared services and customer support services facility for Europe in an existing plant. It will also base some customer financing and treasury management in the IFSC.
Xerox executives said yesterday that while black-and-white copying was still a crucial part of its business, there had been a dramatic shift in the market.
"Increasingly, we've seen three distinct changes in our business: the growth of digital solutions; the use of colour; and a dramatic increase in the other services that we provide," said Mr Bill Goode, Xerox's deputy managing director in Europe.
This provoked a major restructuring, announced in April, in which Xerox's global staffing numbers - now 90,000 - were to be reduced by 10 per cent.
The Irish investment forms part of a reorganisation similar to that of many global companies, as Xerox relies on integrated computer systems to centralise its customer support and back office operations.
"One of the fundamental considerations in the choice of Ireland was the political and social climate, particularly whether the Government had a positive attitude to the business community," a Xerox spokesman said last night.
The skills base and age profile of the labour force was also a factor, he added, in particular its language skills. The flexibility, productivity and cost of labour were also examined, the spokesman added.
"State-of-the-art telecommunications was also a fundamental concern. In recent years, Ireland has invested $3.5 billion to create one of the most advanced networks in Europe," the company said.
"Comparative tax rates were a key part of the decision. As Europe moves towards harmonisation of tax rates, Ireland is particularly well positioned because of its existing comparatively low tax rates," said the spokesman.
Ms Harney said Xerox and the IDA had undertaken substantial research and evaluated the skills availability around Dublin and Dundalk. Both were confident sufficient suitably qualified people were available, she added.
"In effect, the intention of Xerox is to set up an integrated business operation in Ireland from day one, with significant career structure on offer to its workers," the Tanaiste said.
IDA sources said the agency had been "trying for 25 years, banging on their door, and being told to get lost" by Xerox. It had finally succeeded in persuading Xerox that an Irish "campus" similar to those run by corporations such as IBM, Hewlett-Packard and Intel would benefit the organisation.
For IDA executives, Phase Two of its operation has begun: to try to have Xerox expand its operation over time, adding high-value facilities such as research-and-development centres.
The new director of Xerox's operations in Ireland has already been appointed. Mr Aidan Donnelly, managing director of the Dundalk computer firm, Quantum, will take over in two weeks.