THE North-East has become a hotspot for foreign companies that are

creating thousands of jobs across the region every year, a new report has revealed.

Foreign investors generated 3,019 jobs in the North-East in 2011 - almost double the previous year's number, and the upward trend looks set to continue with the likes of Hitachi and Nissan making long-term commitments to the region.

Thai steelmaker SSI's £1bn-plus investment to revive iron and steel production in Teesside was the single biggest job creation project by an overseas company in the North-East last year. Access to a skilled workforce, an established supply chain, port facilities and generations of industry expertise helped to persuade Win Viriyaprapaikit, SSI group chief executive and president, to make the move.

Production at its Redcar site now employs 1,800 people and supports hundreds of jobs at local supplier companies.

Other projects included a new call centre opened in Middlesbrough by French firm Axa Insurance, creating 450 jobs and a new manufacturing plant for US-based Lear Automotive in Sunderland.

Japanese car parts suppliers Nifco, which invested £8.5m to build a state of the art factory in Eaglescliffe, near Stockton, and Calsonic Kansei, which is to create 145 new jobs and expand its product range with a £15.3m investment were among the big investors.

James Ramsbotham, North East Chamber of Commerce chief executive

wasn't surprised by the results which he believed reinforced the region's reputation as a great place to do business. "The North-East boasts the international connections, natural resources, committed workforce, lack of congestion and general quality of life that is essential to attract direct foreign investment," he said.

"We also have a growing reputation for delivery and export performance. Nissan's continued commitment to the region, SSI's arrival, the expansion of Calsonic Kansei and imminent arrival of Hitachi are just a handful of examples of our ability to attract and retain global companies.

"I am delighted that the North-East is increasingly being recognised as the location for these blue chip businesses and long may it continue."

However, the region faces fierce competition from across the border.

Scotland, which retains the Scottish Enterprise agency, enjoyed the highest foreign investment job creation in the UK last year as 5926 positions were created.

The North-East was dealt a blow earlier this year when Spanish wind turbine-maker Gamesa spurned a bid from Hartlepool and chose Leith,

near Edinburgh, for a large new manufacturing plant.

North-East business leaders have called on ministers to ensure Scotland operates on a level playing field when competing for investment with

with English regions.

According to Ernst & Young's annual UK Attractiveness Survey out today (WEDNESDAY) the top three sectors for generating employment from foreign investors in the North-East were: metals, car components and financial services. The region attracted investment largely from the traditional locations of the US, Germany and France.

The report found that the UK's most attractive qualities among foreign companies are its quality of life, culture and language, stable political environment and infrastructure. In total 86 per cent of respondents

were confident the UK will overcome its economic challenges - higher than for other European countries excluding Germany.