IBM says it will put €46m into operation in Dublin

IBM will invest a further €46 million over the next three years in its operations at Mulhuddart, Co Dublin, creating 300 highly skilled jobs, many of them in research and development.

The wide-ranging investment, announced yesterday, will expand the company's existing Dublin Software Laboratory operations by recruiting graduate and doctorate level engineers and programmers; produce a new IBM business incubation centre; and add new jobs in its supply chain operations.

Software operations will include a new Centre of Competency in Biomedical Research, to produce enhanced analytical software for doctors, as well as Centres of Competency for Service Oriented Architectures (SOA), and IBM software that integrates with software from German multinational SAP.

The incubation centre is to be a collaborative effort between IBM and Irish industry partners, developers, small and medium sized businesses, universities and government organisations. It will deepen IBM collaboration with third parties within IBM business units, rather than spin out independent companies, the company said.

The expansion comes on top of an initial €350 million investment a decade ago in the Dublin Technology Campus in Mulhuddart, and another €22 million two years ago, to expand IBM's software research and development capabilities here.

The investment announcement was made by Minister for Enterprise, Trade and Employment Micheál Martin. "This continuing investment by IBM is extremely important to Ireland and will send out all the right signals."

He said it was hard to imagine that IBM set up in Ireland 50 years ago with only three people, who ran an office out of the Shelbourne Hotel. "This is an example of how global enterprises can expand and grow in Ireland," he said.

Bob Moffat, senior vice-president, integrated operations, IBM, said: "These investments are good for IBM, and good for Ireland. They are about creating the right conditions both academically and commercially."

He said IBM "applauded the efforts of the Irish Government" and IDA Ireland in working to transform the Irish workforce and business environment, and singled out the recent announcement by the Government of an initial €2.7 billion investment into science and technology, through its Strategy on Science, Technology and Innovation.

He noted the Dublin Software Laboratory was now one of IBM's key labs and that Ireland fits within its plans to distribute some of the $6 billion IBM spends annually on R&D "into places that have the right skills and the right environment".

IBM was not seeking low-cost production locations but "is going to focus on places where you can innovate, not commoditise", Mr Moffat said.

Commenting on the announcement, Kathryn Raleigh, director of ICT Ireland said: "Today's announcement testifies to the strength of the high-tech skillbase in Ireland and the confidence of industry that students will return to choosing ICT-related courses in greater numbers. Industry is acutely aware of the need to protect and nurture our strong talents in engineering and computing."

Celebrating its 50th anniversary in Ireland this year, IBM is understood to have further Irish project announcements in the pipeline.