A WAREHOUSE firm says it will deliver 120 North-East jobs in a £23m expansion.

Vantec Europe is building a 436,000sq ft base in Sunderland.

Bosses say the development, on Hillthorn Business Park, will be its biggest regional site and the largest ever overseas project carried out by its Japanese parent company, Vantec Corporation.

The company already employs more than 1,000 North-East staff at two existing sites close to Nissan’s Wearside plant.

The new building, complete with office space, is expected to be finished in December, with recruitment due to start in early 2016.

Vantec is known for handling storage and distribution of parts for Nissan, and officials say the new site will support the car maker’s growth, which will see it starting producing the new Infiniti Q30 hatchback later this year.

Martin Kendall, Vantec Europe managing director, said: “This is another major new project for us and a great vote of confidence in our Sunderland operations from our parent companies Vantec Corporation and Hitachi Transport System.

“This investment, next to Nissan, will underpin our position as a supplier to its Sunderland plant.”

Mr Kendall added the warehouse will give Vantec, which also works with Darlington engine maker Cummins, nearly a million square foot of space in the region.

Built by GMI Construction UK, the site has been backed by Sunderland City Council and the North East Local Enterprise Partnership (Nelep).

Regeneration body Nelep is supplying funding from its North East Investment Fund, using Government Regional Growth Fund support, to help Vantec.

Paul Woolston, the organisation’s chairman, added: “I’m delighted this project is underway.

“Vantec’s warehousing in Sunderland is a great illustration of the vigour and ambition of the region’s automotive sector, and the success of Vantec and Nissan in competitive global markets.”

Councillor Paul Watson, leader of Sunderland City Council, added: “This is a great example of Sunderland and the wider region’s dynamism and ability to lead the country in key sectors.

“It strengthens our ambitions for Sunderland to become Europe’s automotive hub.”