FOUR sites across Tees Valley are competing to become the location for a world class car parts factory that will lead to the creation of hundreds of jobs, The Northern Echo can reveal.

Bosses from rapidly growing manufacturer Nifco UK have visited the potential locations which include two sites in Darlington.

It is understood that Lingfield Point business park is among those under consideration by Nifco which needs additional manufacturing space to cope with demand from almost every car maker in the UK.

Nifco almost went out of business 10 years ago but its turnover has rocketed by almost £20m in two years and the new factory is regarded as crucial to bold plans that will double staff numbers and revenue by the end of the decade.

Bosses were last night remaining tight-lipped about the proposed plant but a spokesman confirmed that the favoured location will be recommended next month to the Nifco board in Japan.

The new site is scheduled to open at the end of 2016 or early in 2017 and will become the third new factory built by the ambitious Eaglescliffe firm in the last four years.

The expansion will help drive plans to take staff numbers from 550 to about 800 and grow turnover from £68m this year to £100m by 2018. The ambition by 2025 is for Nifco to run four UK factories employing a total of 1,500 workers generating £200m turnover.

Mike Matthews, the firm’s Darlington-born boss, has spearheaded a dramatic turnaround after he convinced the firm's Japanese parent company to invest in the North-East.

The construction of two new factories containing ultra modern machinery and a research and development facility has helped the Teesside firm to outperform comparable businesses across Europe, including those of leading manufacturers in Germany.

Nifco is now regarded by the Government as one of the driving forces behind the renaissance in UK car manufacture. Joe Greenwell, former chairman of Ford who now leads UKTI's Automotive Investment Organisation, said: "When we think of a company that really exemplifies the progress made in the development of the (automotive) supply chain, typically we think of Nifco."

The firm designs and manufactures a huge range of car components, such as grab handles, cup holders and fasteners, for Nissan, BMW Mini, Toyota, Jaguar Land Rover and Honda.

In February it received a vote of confidence when it beat rivals in Germany, Japan and China to a 10 year Ford deal that could be worth up to £50m.