Up to 250 jobs will be created in Mullingar, Co Westmeath, over the next three years in a joint venture between Coillte and an Austrian company, Griffner Haus. Chris Dooley, Industry and Employment Correspondent

Each has a 50 per cent stake in Griffner Coillte, which will design, manufacture and market timber-framed buildings. Its manufacturing facility in Mullingar was officially opened yesterday by the Minister for Communications, Marine and Natural Resources, Mr Ahern.

The company employs about 18 people and this is set to rise to 60 in its first year. Ms Deirdre Shiels, human resources executive, said the plan was to have 250 staff at full production, which the company expected to reach within three years. It will employ skilled and semi-skilled workers, including carpenters, in production and construction, alongside office staff.

The company was established last year following market research by Coillte, the State forestry company, that confirmed the potential for high specification timber buildings.

It says the construction method it uses differs from most other timber frame systems in Ireland, which use traditional masonry on top of the structural frame of the building.

The company has completed houses in Galway and Dublin, while projects under way include Coillte offices in Newtownmountkennedy, Co Wicklow.

The new enterprise was welcomed by the president of the local Chamber of Commerce, Ms Sheila Cassidy, who said it was "hugely significant" for Mullingar. The town had a good selection of indigenous and international businesses, but a project of that size and scale involving companies of the calibre of Coillte and Griffner Haus was particularly welcome, Ms Cassidy said.

Mr Ahern said Mullingar's central location would prove invaluable "as the new company looks forward to the growth of an export market to complement the national demand".

The project was "a unique opportunity to greatly expand and demonstrate our commitment to a diverse base for industry in Ireland, in particular for the forward-looking use of sustainable resources", he added.