ALMOST 300 jobs are safe at a stricken micro-electronics plant in Newport following its sale for £54 million to a US buyer.

ESM (European Semiconductor Manufacturing) at Duffryn made 235 redundant in February after calling in receivers, leaving 292 workers remaining at the plant.

It has now been bought by go-ahead American company International Rectifier Corporation (IR), which already has a factory in Wales and has pledged to invest in the plant and increase its output and profitability.

In February, ESM's main banker withdrew its support in an atmosphere of fluctuating markets for semiconductor products, even though the company had healthy order books.

The Argus reported how sacked workers were bitter about not being paid, and were also told the company had stopped their pension payments. They plan to take the company to employment tribunals.

IR is a world leader in its field. Its products enable Internet hardware to gain speed and reliability, allow portable electronics to run longer off a single charge, improve fuel efficiency in cars, and cut energy consumption in domestic appliances.

IR boss Alex Lidow said he was excited by the Newport sale because the company had been so successful in its other Welsh plant near Swansea.

"The acquisition represents excellent value, and it positions IR to meet the demand for our fast-growing proprietary products over the next several years, as well as our goal of 30% overall revenue growth in 2003," he said.

"We expect to invest up to £120 million more over the next five years in line with growth needs and market conditions to bring this facility to full capacity. At this level, we expect it to be able to generate £500 million of revenue annually."

Newport AM Rosemary Butler said she was delighted.

"The workers there are really loyal and have delivered everything that has been asked of them," she said. "It is a really up-to-the-minute plant. Hopefully, the new company will invest and I shall be seeking a meeting with the management to get reassurances of the direction they are going to take."

First minister Rhodri Morgan said IR was recognised globally as one of the world's most advanced power semiconductor companies.

"We are pleased that once again they have chosen Wales as the location for this key strategic phase of their continuing expansion," he said.