Enterprise minister Ian Pearson hailed 'significant investment'

Seagate Technologies aims to help the Springtown-based factory to develop computer hard disks which could have extra storage capacity and performance.

The firm employs about 1,800 people at its Springtown and Limavady factories.

The investment will not create any new jobs, but it will help maintain the existing workforce.

Speaking at the plant, Enterprise minister Ian Pearson said it was a signal to others that Northern Ireland was the place for cutting-edge technologies.

This is a strong statement of the company's commitment to Derry and its confidence in the workers here John Hume Foyle MP

He said this was among the most significant investments in the north west and the wider Northern Ireland economy.

He described Seagate as "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".

Mr Pearson added: "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."

Invest Northern Ireland has contributed �10m towards Seagate's investment.

In April, the company announced a substantial research and development investment at its Limavady plant to research magnetic recording technology.

Foyle MP John Hume said he was delighted at the investment.

"This is a strong statement of the company's commitment to Derry and its confidence in the workers here," said the former SDLP leader.

"It is a major signal internationally that this region can deliver world class, state-of-the-art technology products."