Ahern says manufacturing firms must be more innovative

The Taoiseach Bertie Ahern has told the Dáil that manufacturing companies in Ireland must become more innovative in order to survive.

Mr Ahern was responding to opposition questions about the planned closure of the NEC Semiconductors plants in Co Meath.

The factory's Japanese owners said yesterday that they would be laying off all 350 staff by September and moving business to low-cost locations in Asia.

"As we undergo fundamental change, we can no longer compete as a low-cost location for basic manufacturing investment," Mr Ahern said today.

"We are no longer a low-cost economy and, quite frankly, we're not trying to compete at that level, but it does mean companies that are at that standard have to be helped to be more innovative, otherwise they won't survive."