A BANKNOTE maker will create North-East jobs to reinforce its North-East presence.

De La Rue told The Northern Echo it aims to recruit around 80 workers for its factories in Gateshead.

The move represents a marked shift for the business, which, a year ago, was forced to make 85 redundancies to protect it from falling profits and fierce European competition.

However, Martin Sutherland, chief executive, said it is now ready to recruit again, after seeing revenues and profits rise in the year to March 26.

The business, which runs the world’s largest banknote factory on Team Valley, overseeing work on scores of international currencies, added its order book was also up 62 per cent to £365m.

Mr Sutherland revealed the company, which employs more than 580 people in the region and has made its Gateshead site a centre of excellence for cash manufacturing alongside bases in Kenya and Sri Lanka, will spend £15m over the next two years to improve the plants.

He said: “We are one year into a five-year programme and we need to continue doing some of the things we’ve started.

“We are making a lot of investment across the business.

“We are putting in more manufacturing equipment and are now recruiting again in Gateshead to bring numbers back up to where there were.

“We lost about 85 (but) our plan is to recruit a similar number back this year.

“There is more to do, but I’m pleased with the progress made and confident the right foundations are in place to develop a more balanced business and increase profits.”

Late last year, De La Rue revealed it was cutting global production as demand for paper notes fell, saying capacity would drop from eight billion notes a year to six billion and adding jobs would be affected in Malta.

It also revealed work from its Team Valley passport-printing plant would transfer to the Mediterranean country, though bosses yesterday (Tuesday, May 24) told The Northern Echo UK passports are still processed in the North-East.

According to its latest results, the company has benefited from its restructure, with full-year revenues seven per cent better off at £454.5m and underlying pre-tax profits two per cent higher at £58.5m.

Mr Sutherland added: “Currency is core to our business and the number of banknotes in circulation is expected to grow at three to four per cent a year.

“However, with ongoing oversupply in the banknote and papermaking industries, we must optimise our capabilities and the volatility of the banknote market means it is essential we build flexibility into production.”

De La Rue’s Gateshead factory, which has a sister plant in Debden, Essex, makes up to 3.1 billion notes a year, which each possess a unique serial number.