Hi-tech firm invests €129m in Derry factory

A US technology company is investing €129m in its Derry plant in the development of next generation technology for the computer industry, it was announced today.

The investment by Seagate Technologies will help the Springtown factory develop new technology that could provide computer manufacturers with hard disk drives that offer increases in storage capacity and performance.

Northern Ireland Minister responsible for Enterprise, Trade and Investment, Ian Pearson, said it was a signal to others that the province was the place for cutting-edge technologies.

Speaking at the plant, Mr Pearson said: “This is a major investment – among the most significant in recent years – in the north west and the wider Northern Ireland economy by a global leader that has become a driving force here in the electronics industry in terms of its focus on innovation and relationships in the universities on cutting-edge R&D projects.”

As well as positioning the Springtown plant at the very centre of Seagate’s most advanced technology, “the investment is a signal to the international electronics industry that Northern Ireland is a perfect location for knowledge-led companies with a strong global focus”, he said.

No new jobs will be created by the investment, but it will help preserve the existing workforce.

Plant manager John Spangler said continued commitment to R&D was an essential part of Seagate’s corporate strategy to maintain technology leadership, and both the Springtown facility and the company’s sister operation in nearby Limavady both had centres of excellence working on advanced technology projects.

“Springtown will play a central role in extending our capability to develop advanced technology products using a variety of materials that are required to provide the vast amount of storage demanded by the latest digital systems,” he said.

With more and more devices adopting digital technology formats, he went on, it provided the company with new applications including consumer devices such as televisions, personal video recorders, gaming consoles and MP3 players.

The company has been given £10m (€14m) by the the Invest Northern Ireland economic agency towards the investment.

It is the latest vote of confidence by Seagate in its Northern Ireland operations.

In April the company announced a substantial R&D investment at the Limavady plant to undertake strategic research into the next generation of magnetic recording technology.