"Fantastic news for Limerick" was how the President of the Chamber of Commerce, Mr Pat Kearney, greeted news of Dell Product's massive expansion plans.

The development represents the biggest single industrial development in the city since the high technology sector took over from more traditional employers.

The Labour Mayor of Limerick, Mr Frank Leddin, said he was overjoyed at the good news. "It shows more confidence being expressed in the city once again and it is a welcome reprieve for those workers who are losing their jobs at AST, the other computer plant at the eastern side of the city."

Mr Kearney said the Dell expansion augured well for the future of Limerick in that the city was attracting further investment by this category of company. Dell is expected to take over the 320,000 square feet AST plant at the Plassey technological park as part of an arrangement which will see a scaled down AST operation continuing in a smaller section of the complex.