A town hit by news of 900 job losses last summer has received its second employment boost in less than three months.

Npower has announced plans to double the size of its operations in Peterlee, County Durham and take the number of people it employs across the region to about 2,500.

The news came not long after Fusion Contact Centre Services unveiled its plans to create 600 jobs at Peterlee's Bracken Hill business park.

The news has come as a welcome boost to the area after mobile phone group Orange, which employed 900 people on the Bracken Hill site, announced its closure in July last year.

Npower has four contact centres across the North-East, including two sites in Peterlee, one in Thornaby, near Stockton, and another at Team Valley, Gateshead.

Last August, it announced the creation of 220 jobs when it expanded its operations in Peterlee and took over a 15,000 sq ft building on the Whitehouse Business Park. The 300 additional jobs will be created as npower takes over another floor in the building.

Julie Jaglowski, npower's head of customer services residential, said: "Our expansion plans are by no means a short-term fix, but are part of a long-term investment strategy and commitment to the North-East region.

"This year, we are planning to double the size of the Whitehouse Business Park facility providing an additional 300 roles."

Call centre operator Fusion, which employs 350 people at Sunderland's Hylton Riverside business park, announced in February it planned to create another 600 jobs in Peterlee by 2010.

In the same month, financial Services Group GE Money announced plans to invest in its offices at the Cobalt Business Park, North Tyneside, and almost double its 450-strong workforce on site.