(Adds minister's comments on video)

Methode Electronics is to invest €6.5 million in Malta following an agreement reached with the government, Finance Minister Tonio Fenech announced this morning.

The company has two plants in Malta employing 750 in the automotive and non-automotive sectors. It will be investing in new lines producing parts mainly for the non-automotive sector.

The workers in the automotive sector have been on a four-day week since November, with the remaining workers on a 3.5-day week, but Mr Fenech said that the automotive workers are expected to return to a five-day week in April while the other workers will be on a 4.5-day week.

He also announced that the company may be investing a further €6 million on new production lines in Malta next year, a situation which would lead it to engage up to 100 more workers.

The investment will include worker-training, which will be supported by the government.

The news conference was also addressed by Methode Group European vice-president Joseph Khoury who expressed his appreciation to the minister and his team, and Malta Enterprise for their support. .

Informed sources said that without this agreement, the company had indicated that it was to shed around 100 jobs.