A £3 million (€3.81 million) investment, by Irish fashion house Michael H with Enterprise Ireland, in the upgrading and expansion of its Ballyfermot facility will make it the largest ladies' fashion manufacturing plant in the Republic.

At the opening, the Tanaiste, Ms Harney, said that in the face of intense competition from home and abroad the company had successfully adapted and changed to meet these challenges.

Michael H has more than doubled its turnover from £5 million in 1994 to an expected £12 million in 1999 while export sales have grown 350 per cent in the same period and now account for more than 50 per cent of its sales.

Mr Michael Heather, managing director and founder of the company, said the Irish clothing industry continues to face intense competition from the Far East and now also Eastern Europe.

He said the company had adopted a positive outsourcing strategy and are currently developing manufacturing partnerships outside of Ireland to deal with this competition.

Ms Harney said Michael H had successfully differentiated itself by segmenting its markets and developing quality brands and said the Government was committed to supporting the Irish fashion industry and Irish clothing manufacturers in particular.

The firm employs 260 people in Ireland and Britain and operates seven retail outlets throughout the State.