LISBON, April 17 (Xinhua) -- Lisbon Mayor Fernando Medina gave a warm welcome on Tuesday to Volkswagen's plans to open a software development center here.

"This software development center will help attract talent and create specialized jobs in the digital and future-mobility sectors," Medina said via Twitter.

"We are very happy to be a part of the next generation of Volkswagen Group solutions," he added.

The new center will employ 300 information technology (IT) experts, specifically software engineers, web developers and UX designers. They will focus on developing cloud-based software for Volkswagen Group IT and MAN Truck & Bus AG.

"We are transferring the success story of our Berlin digital labs to Portugal," said Martin Hofmann, chief information officer of the Volkswagen Group.

The announcement is also thought to be good news for AutoEuropa, a Volkswagen assembly plant in Palmela, some 40 km south of Lisbon. The plant is one of the biggest direct foreign investments in Portugal and employs 3,400 staff, but management and staff have been at loggerheads over new shift patterns since December.

There were fears the dispute may prompt Volkswagen to take its business elsewhere, but plans for a Lisbon software center suggest increased commitment in Portugal.