Second Hewlett Packard jobs plan on the way

US company Hewlett Packard has discussed major expansion plans with IDA Ireland, under which it would employ almost 4,000 people in Leixlip in about five years time.

It emerged over the weekend that the company is expected to announce a 1,000 job expansion at Leixlip later this week.

However, The Irish Times now understands that it is also in the final stages of negotiations over the establishment of a wafer fabrication plant which could employ a further 800 people. While this project may not be formally announced for some time, it is understood that it has now reached its final planning stages, involving an environmental impact study.

The Cabinet is expected to approve the entire expansion package - involving over 1,800 jobs - over the next couple of days, although the official announcement may only refer to the 1,000 additional jobs, relating to an expansion of the assembly function at the plant.

The announcement of the expansion plan later this week will be the second major project unveiled by the Minister for Enterprise and Employment, Mr Bruton, since the election, following on last week's news of a 1,000 job Seagate plant in Ringaskiddy.

Around 1,000 people are already employed in the plant in Leixlip which manufacturers inkjet cartridges for computer printers and employment is rising all the time.

The expansions now under discussion and awaiting Cabinet approval involves a further 1,800 jobs, which along with rising demand could see employment in the Leixlip plant rise close to 4.000 in five years time.

This would bring the scale of employment at Hewlett Packard to that in the existing Intel facility, close by. Hewlett Packard is completing a study of the plant for manufacturing wafers - or computer chips - for its printers and other electronic products.

Given the scale of the overall operation, it is expected to involve the development of the local road infrastructure and other services. Intel contributed financially to a similar development, including a special interchange serving its plant.

Hewlett Packard has already invested over £300 million in Leixlip and its new plans are likely to see further capital investment of £300 million to £400 million or more over the next three years, backed by substantial state grant aid.

Hewlett Packard began construction of its plant in Leixlip in December 1995. Its 200 acre site leaves more room for expansion. The plant mainly serves the European market.

The group has more than 600 plants in 120 countries worldwide involved in a wide range of electronics and computing businesses. Leixlip is already one of the biggest producers of inkjet cartridges for the group's computer printers, with the total plant area exceeding 750,000 square feet. Last year the group had revenues of £26 billion.

Visiting Ireland last week, the group's president and chief executive, Mr Lew Platt, said that the startup in Leixlip represented "a new record in our company for building a plant this size". It is currently employing people at the rate of 50 to 60 a month in the plant which already represents one of its largest ever single investments.