The Newry company Haldane Fisher is investing £1.6 million in a project aimed at developing business opportunities in the Republic. The company, which is part of the Haldane Sheills Group, employs 300 people in the manufacture of timber mouldings for the construction industry.

Group managing director Mr Ian Haldane said that the investment would enable the company to improve efficiency and overall cost-competitiveness.

"We are installing new timber moulding machines and handling equipment," said Mr Haldane, "which will help reduce costs, increase product quality, and provide the additional volume which should result from an aggressive marketing drive in the Republic."

He said that Newry was an ideal base for developing business in the South. "It means that, unlike our Scandinavian competitors, we can service merchants throughout Ireland within a matter of days. This is important because our existing and potential customers are increasingly seeking to maintain their margins by reducing stockholding costs."

Haldane Fisher is a wholly-owned subsidiary within the family-owned Haldane Shiells Group, which was set up just over 50 years ago. The company, formed in 1990 following the acquisition of JS Fisher, manufactures machined timber mouldings under the Halmac brand for customers in Northern Ireland and the Republic.