A NORTH-EAST insulation firm has sealed a £38m contract to work on more than 4,500 homes, which it says will create up to 80 new jobs.

The Cosyseal Group, based in Stockton, has signed a deal with a housing provider to fit external wall insulation and brick cladding to properties in Watford, Hertfordshire.

The company, which moved to its existing headquarters from Darlington in 1997, is working with Watford Community Housing Trust on 4,700 homes as part of a Government-funded scheme to improve energy efficiency.

Bosses say the new jobs will be split between the North-East and its Watford depot, with work split into 17 phases, including an initial 118 properties.

It is also also working on an £18m contract to fit insulation to more than 1,900 former Army and council homes in Richmond, North Yorkshire.

The firm, who earlier this year announced a £30,000 two-year deal to sponsor Darlington Football Club's shirts, has a number of divisions, including Cosyseal Insulation, which specialises in loft and cavity wall insulation, exterior insulators Cosy Clad and heating branch Cosy Warm.

Jamie Robson, Cosyseal Insulation's national business development manager, said he was delighted with its success, and hoped the Watford work, funded by the Government's Energy Companies Obligation programme, would be the catalyst for more contracts.

He said: “This is our biggest contract to date, and we are really pleased with how things are going.

“We are really busy at the moment, and in terms of the Watford work, we are really happy to be working with Watford Community Housing Trust and hope every household will benefit from the partnership.”

Tina Barnard, Watford Community Housing Trust chief executive, said the partnership with Cosyseal would prove to be extremely beneficial.

She said: “This is a real win-win situation because this work will not only reduce energy bills for our tenants, but it will be good for the environment and create local jobs too.

“We can’t wait to get started.”