AN electric vehicle parts maker is “very close” to revealing a factory expansion that could lead to fresh North-East jobs, The Northern Echo can reveal.

Sevcon is in advanced negotiations over switching to a new plant.

Bosses say the site will help ramp up manufacturing and testing work on Sevcon’s technology, which includes controllers and drivetrains for cars.

Matt Boyle, president and chief executive, told the Echo the factory will be close to Sevcon’s existing Gateshead head office, saying it will also provide room for extra staff to maintain the company’s global advances and build on record sales of £40m in 2016.

The business employs more than 80 engineers in the region and has an order book stacked with lucrative work, including a deal worth up to £160m to develop an electric drivetrain for a Chinese and European vehicle maker.

Mr Boyle said such a contract, which has been supplemented by a £28m agreement to electrify drive systems in sportscars, was proof Sevcon needed to strengthen its foundations to furnish further growth.

Speaking to the Echo from a base in Italy, where Sevcon previously took on a market rival, he confirmed it could also provide room for more workers.

He said: “We are very close to making an announcement on the factory.

“We are staying in the same postcode but have outgrown the existing building.

“We are always looking for more people and have active searches on at the moment.

“They are global searches, but if they turn up in Gateshead that would be a good thing.”

Mr Boyle was speaking after the firm revealed its new contracts had helped push sales higher to £10m in the first quarter.

He said such clamour had been matched by an investment in operations, which, while delivering short-term financial losses, would provide long-term gains.

He said: “It has been a lot of hard work building the reputation that has given us these opportunities.

“Our contract pipeline covers the globe and we are planning to add to it as we go through the year.”

Sevcon is known for supplying controllers for the all-electric Renault Twizy city car and parts for Brammo’s green motorcycles.

It also previously opened an office at Milton Park, near Oxford, where a number of Formula One and supercar companies are based.

However, a main driver in its recent growth has been its decision to take on Italian battery charger producer Bassi. Sevcon bought Bassi a year ago to increase its hold on the electric vehicle market, sell equipment to more customers and enhance new controllers.