JOBS could be created by an engineering firm’s £4m expansion to take advantage of plans for a “nuclear renaissance”.

Darchem Engineering will start work next week on expanding its facilities at Stillington, near Stockton, with the largest proportion being spent on its thermal protection business in preparation for the UK’s expected new wave of nuclear plants.

In January last year, the Government gave its formal backing to a new generation of nuclear power stations, with construction on the first expected to start in 2011.

Darchem, which employs 600 people at Stillington, is hoping to take advantage of its extensive experience in the nuclear industry, having provided insulation and specialist fabrications for more than 140 nuclear power stations worldwide.

Yesterday, Durham Citybased NOF Energy, a business development organisation representing 300 UK organisations in the oil, gas and energy sectors, advised the North-East supply chain to prepare for a lucrative “nuclear renaissance”.

George Rafferty, chief executive of NOF Energy, described the opportunities for regional businesses as “huge”.

Darchem was hopeful that the extension, part-funded by a grant from regional development agency One North East, would eventually lead to the creation of extra jobs.

Geoff Butler, Darchem’s business unit manager for thermal protection, said it had successfully competed for nuclear work across Europe, the Far East and the US.

He said: “We are therefore looking forward to the commencement of a UK build programme that we can be involved in.”

The facilities will increase internal factory space by 3500sq metres and the external site by 3.8 acres.

The company has developed a range of nuclearspecific products used to provide insulation and fire protection systems for reactor pressure vessels and primary pipework and associated electrical wiring systems.

NOF Energy yesterday said that it was aware that three of the companies expected to be most involved in the new plants, EDF Energy, Areva and Toshiba Westinghouse, had started looking at the supply chain ahead of the first orders being placed by contractors during 2011.

George Rafferty, chief executive of NOF Energy, said: “Now is the time for the North-East supply chain to prepare itself for what is undoubtedly a nuclear renaissance.

“Following the Government’s decision that nuclear new build is vital to meet future energy needs and the need for energy security, the opportunities for regional businesses supplying and looking to enter the nuclear industry will be huge.

“Therefore, during 2009 and 2010 it is vital that companies in the regional supply chain undertake activities that will strengthen their businesses so that, as the global economy recovers from recession, they are well-placed to capitalise on the opportunities.”

It is estimated that by 2023 the global civil nuclear market will be worth approximately £50bn a year.