Virgin Cola has become the first overseas company to establish an operation in the second phase of the Lough Egish Food Park in Co Monaghan.

Its 12,000 sq ft plant will produce two billion litres of concentrate a year for Virgin Cola's operations outside the United States. Up to 20 people will be employed at the plant, which is heavily automated.

More than 300 jobs will be created over the next five years in the second phase of Lough Egish's development.

The 67-acre park was specially developed to promote the growth of the prepared consumer-foods sector in the north-east.

It has received financial backing from the local community, the private sector and State agencies.

Kozy Shack, a New York-based manufacturer of refrigerated desserts, which is to introduce its products into Europe next year, is also believed to be considering locating there.

The Taoiseach, Mr Ahern, opening the plant yesterday with Virgin Group chairman Mr Richard Branson, said Virgin Cola's decision was a "huge vote of confidence in the local community".

Mr Branson said the new plant would provide the company with long-term security of supply and "give us greater efficiency in the entire process of producing Virgin Cola".

Mr Ahern said the Virgin Cola project had been "mooted many years ago". A successful partnership between the local community, the private sector and the State development agencies had made it a reality.

To date, almost £3 million has been invested in the infrastructure of the Lough Egish facility, a former cold store site, including a £1.8 million effluent treatment plant.