US giant PayPal is to create 1,000 jobs in Dundalk, County Louth. The announcement will be made by the Irish Prime Minister Enda Kenny on Tuesday.

PayPal already has 1,500 people employed in Dublin and the facility is a major boost for the Irish jobs agency, the Industrial Development Agency.

PayPal is a subsidiary of E Bay, the California-based on line auction site.

The new facility will process online payments from Europe, the Middle East and Africa.

The 1,000 people employed will be a huge boost for the economy of Dundalk, a depressed town, near the Northern Ireland border.

The jobs will be filled over a four year period as the company ramps up operations.