Computer Products, the US power converter company with a 400-job operation in Youghal, Co Cork, has formally merged with a rival firm, Zytec.

The move, approved by shareholders in the United States, will create Artesyn, a global corporation with annual revenues of more than £300 million. The Irish operation is expanding, and plans to employ 550 people by the year 2000.

The creation of the larger company will benefit the Youghal plant, said its managing director, Mr Gary Duffy.

"The merger boosts the opportunities arising for the Youghal facility where employment had already risen to 400 by the end of 1997 on the momentum of the Cork plant's dynamic growth performance," Mr Duffy said.

The Youghal facility would serve as the European headquarters for the new corporation, and the opportunity arising from the merger would provide the potential for significant further growth at the plant, he added.

Some 60 engineers currently work in Cork on research and development and the plant has an annual turnover of £7 million.

Mr Duffy has been appointed managing director of Artesyn Technologies Europe.

He said the plant would be the European headquarters for sales and marketing, administration, research and development, and engineering.