A CAR parts company will make next generation chassis and suspension in a £12m expansion.

Gestamp Tallent, in Newton Aycliffe, County Durham, has received funding support from The European Investment Bank.

Bosses say the cash will further strengthen development of Tallent’s parts, which are relied upon by manufacturers such as Sunderland-based Nissan, Bentley, Ford and Toyota.

The funding is another boost for the business, which last year revealed it had spent millions to improve its Aycliffe bases by developing a press plant and installing a new press hall, parts store and racking.

Jonathan Taylor, European Investment Bank vice-president, said: “We have a strong track record supporting investment to strengthen the world-class leadership of UK industry.

“We are pleased to continue our co-operation with the UK automotive sector to finance significant new investment by Gestamp Tallent.”

Speaking last year about its continued expansion, Peter Gallone, Gestamp Tallent plant director, said the company needed to constantly look forward to meet demand.

He added: “As our business and customer base continues to expand, we need to ensure assembly lines and production facilities are renewed to increase efficiency and output.

“We're contributing significantly to the local economy and it is part of my plan to open up to the local businesses and the local community.

“I want to help them understand what we do, in the hope we continue to attract local people as employees.”

The self-financing European Investment Bank previously provided support for Aycliffe trainbuilder Hitachi Rail Europe, to help production of its rolling stock for the East Coast Main Line, and backed Nissan’s Wearside venture to produce the all-electric Leaf hatchback.

Lending by the bank, which is directly owned by the 28 European Union member states, last year totalled £5.6bn.

The British Government has a 16 per cent share in the organisation.