Up to 400 jobs are to be created at a £13 million (€16.5 million) computer manufacturing plant in Waterford which recently commenced operations, it was announced yesterday.

Confirmation that Nypro Waterford is the latest business to locate at the city's IDA industrial estate relieved some of the gloom emanating from the introduction of short-time working at Waterford Crystal.

The company, an Irish-US joint venture and sister company of Nypro Ltd in Bray, Co Wicklow, specialises in contract manufacturing and assembly for clients in the computer industry.

Announcing its opening, the Tβnaiste and Minister for Enterprise, Trade and Employment, Ms Harney, said Nypro's decision to locate in Waterford was a "tremendous boost", not just for the city, but the south-east region. "While the creation of 400 good quality job opportunities in a modern industry environment itself is significant, it will also provide further spin-off benefits for local service industries," she said.

The company is confident it will not be damaged by the downturn in the economy and the computer industry in particular. Mr Pat Holohan, its general manager, said major computer firms were more likely to outsource product during an economic slowdown as it was a cheaper option. As a contract manufacturer, Nypro could benefit from this.

The company has already secured a major contract with an industry client and 90 people are currently employed at the plant. With support from Enterprise Ireland, it is planned to build staff numbers to 400 over the next four years.