Intel to get up to €50m in grant aid

INTEL remains on course to receive up to €50 million in Government grant aid to support its €3 billion investment in a newmicrochip plant in Leixlip despite the European Commission blocking the original €170m aid package.

Since 1979 Intel has received €218m in Government grants in support of the company’s €5bn investment in its giant Leixlip complex, which created 5,000 jobs.

Following the withdrawal of an original grant aid package of €170m from the IDA in the teeth of rigid opposition from EU Competition Commissioner Neelie Kroes, the IDA is to re-enter negotiations with Intel about how the state job-creation agency can continue to support the project.

“IDA and Intel will be working together to ensure that investment in the world’s most advanced technologies takes place in Europe and Ireland,” the IDA said last night.

In a carefully worded statement, Intel warned it will think carefully about future investments in Ireland following the intervention of Commissioner Kroes. However, it stressed it is to proceed with the development of the €3bn microchip facility in Kildare, despite the withdrawal of grant aid.

The investment will create 400 new jobs, according to Intel.

A second major job creation project is being examined by EU Competition Commissioner Kroes. The IDA said it did not anticipate any problems with its €50m-plus grant aid support for Centocor Inc.

The a wholly-owned subsidiary of Johnson & Johnson plans to construct a biopharmaceutical manufacturing centre in Ringaskiddy, Co Cork, creating 330 jobs over five years.