McAfee quits Holland to set up here

McAFEE Inc is to locate its European headquarters in Cork creating 152 highly skilled and well-paid jobs. The firm develops anti-virus software to protect computer systems.

It is located in Holland, which loses out as a result of this decision.

McAfee has been attracted here by the low 12.5% corporation tax. Holland's rate stands at 34%. Trade Minister Micheál Martin made the announcement in the US yesterday. He is on a week-long marketing trip there with IDA Ireland.

McAfee is based in Santa Clara, California, and employs nearly 4,000 worldwide.

The Cork jobs, close to 90% of which will be filled by graduates, will carry an average salary of €40,000 a year, according to the IDA.

In April, McAfee reported sales of $217 million for the first quarter, with profits of $56m or 32c per share. McAfee's decision to quit Holland for Ireland is seen as a coup by the IDA, which recently has been attracting high-level investment projects by Intel, IBM and Guidant.

McAfee is one of the leading security software companies in the world.

Its decision to target Cork will boost the attractiveness of the region as a key location for software investment. A number of McAfee personnel are already working in the National Software Centre in Cork, gearing up for the operation, due to come on stream in 2005.

Mr Martin, speaking after meeting senior executives of McAfee, said "over 80% of the jobs will require a third level qualification in disciplines such as software product development, engineering and localisation, finance and accounting and supply chain management."

It also shows Ireland remains the location of choice for leading-edge technology companies, he said.

And it is in line with the Government's policy and IDA's goal of attracting high-value, knowledge based operations and investments from companies like McAfee to Ireland, he said.

The Cork centre, the location of which has not been decided, will have a product development team whose operations will include multi-lingual product localisation, financial shared services and operations for international markets.

The establishment of the centre is the result of restructuring by McAfee of its worldwide activities.

IDA Ireland director-south Mary Buckley welcomed the announcement by the minister.

The decision to locate this major centre in Cork further strengthens the region's position as a location of choice for high value, knowledge intensive investments, she said.