A NORTH-EAST engineering firm has taken on more staff after winning a multi-million pound contract in the nuclear sector.

The contract, which involves work for existing nuclear facilities in the UK, means Darchem Engineering taking on up to 20 more staff, taking employee numbers at the firm's base in Stillington, near Darlington, to 650, an increase of 100 since the middle of last year.

The contract with Actus comes shortly after Darchem managing director Graham Payne said that his firm was looking to take on more nuclear work.

The company originally specialised in fire protection and insulation systems for nuclear power stations.

The drop-off in their popularity over the past 25 years saw it diversify into other markets, such as the aerospace, cars, defence and oil and gas sectors.

Although nuclear became a smaller part of its operations, the company continued to work in the field and, as the nuclear sector has again grown, Darchem has looked to increase that side of the business over the past 12 to 18 months.

Last night, Mr Payne said:

"The new contract in the nuclear sector has allowed us to create another business unit within the company and increase our employment levels by between ten and 20 people in very highly skilled jobs.

"It is a very complex and specialised fabrication contract.

"We are absolutely delighted with this new order, it takes the company back into an area it was very dominant and strong in between 20 and 25 years ago, complements the skills we have within the company and enables more employees to develop.

"The contract is going to run throughout this year and the first half of next year."

With up to eight new nuclear power stations to be built in the UK the firm said it was well placed to service that market.

Last year, Darchem announced plans to build an £8m facility in Stillington, creating 100 jobs, specifically to service the growing nuclear work.

On Monday, February 13, Lord Hutton, chairman of the Nuclear Industry Association, the leading trade organisation for the sector, will officially open a nuclear exhibition centre at the plant and take a tour of its facilities.

He will be accompanied by Keith Parker, chief executive of the Nuclear Industry Association.