EXCAVATOR manufacturer Komatsu UK has announced a ten per cent rise in turnover to £270m on last year and the creation of 40 jobs.

The company, based in Birtley, near Gateshead, said it had also seen a year-on-year sales rise of almost nine per cent with 4,096 machines being produced.

As a result, staff numbers continued to grow from 720 to almost 760.

The company said following the launch of a number of new machines last year, Komatsu won large orders from new customers, providing a boost to production.

Managing director Peter Howe said: "Our achievements in 2005 have been exceptional.

"Our new model introduction has been successful, with all models being introduced on time.

"We have seen an increase in our market share and the new machines have been very well received.

"The market is still very strong with continuing high demand for our products. It is currently expected that this level will be sustained into next year."

Komatsu, which has been based in Birtley for 20 years, makes 15 machine models ranging in size from 13 to 80 tonnes. It exports about 75 per cent of its products to Europe, North Africa and the US.

The company has more than tripled sales and doubled its workforce since 2000.