Discount supermarket Aldi is to expand in Ireland, with 35 new stores planned.

The project, costing €350m, will see around 490 new jobs created in-store and around 160 at a second regional distribution centre, to be located in Mitchelstown, County Cork.

The announcement came after Aldi’s Irish business reported a 20% increase in sales since January 2008. According to the company, over 40% of its groceries are now sourced from Irish suppliers, including all of its cakes.

Work on the new distribution centre is due to start in March 2009. Aldi currently operates 61 stores in Ireland.