Manufacturer's Services Ltd (MSL), the New York-listed company founded by Irish entrepreneur, Mr Kevin Melia, will establish a European headquarters in the Republic.

The company has European operations in Spain and the Republic. MSL will expand into eastern Europe and Mexico within 12 months, Mr Melia, chief executive and chairman of MSL, said. He said the European headquarters probably would be located at the firm's existing location in Galway.

The business climate, tax structure and existing infrastructure in the Republic were key factors in the company's decision, said Mr Melia. MSL has invested $20 million (€22.66 million) in the Republic. It will employ 1,000 staff at its two centres in Dublin and Galway over the next few years, said Mr Melia.

Wicklow-born Mr Melia was in Dublin yesterday to announce an expansion of the company's Spanish operations. MSL will construct a new 76,000 sq ft facility in Tarragona.