AIRPORT bosses have unveiled £10m plans to build an industrial hub they hope will galvanise a site and deliver thousands of North-East jobs.

The Peel Group, which controls Durham Tees Valley Airport (DTVA), has pledged £5m to revamp space south of the runway.

Under the blueprint, the firm will erect a new building to start the first phase of its Southside Business Park development and lay a road to link the north and south sides of the aviation base.

The move is part of DTVA’s wider master plan to augment existing Aberdeen and Amsterdam flights, and bosses say it could deliver 3,000 jobs and annually pump £11m into the local economy by attracting industrial, warehouse and delivery firms to the region.

The proposals for the park, to be known as Aero Centre Tees Valley, are expected to be matched by a further £5m from the Government’s Local Growth Fund, through the Tees Valley Unlimited Local Enterprise Partnership.

The airport’s hangars are already home to global aerospace and defence firm Cobham, aircraft recycler Sycamore Aviation and parcel firm TNT, and Robert Hough, DTVA chairman, said the cash commitment proved Peel was dedicated to the site.

He said: “This reflects the strategy set out in the master plan to maximise the potential of the whole airport to help secure air services and make DTVA a major hub for business and general aviation.

“The new road is vital to opening the south side as a whole, including the development of new aviation-related activities on land adjacent to the runway.”

DTVA unveiled its master plan back in 2013, when officials said they could sell land for hundreds of homes to generate millions of pounds to spend on the airport, including expansion of its existing north side employment park.

Mr Hough confirmed work was ongoing to develop plans for more mixed-use space on the north side, with its Aero Centre plans due to be submitted to Stockton and Darlington councils.

Reacting to the announcement, Stephen Catchpole, TVU managing director, said Peel’s proposals were good news for the region.

He said: “This application is a sign of the commitment of Peel to deliver the vision it set out in the master plan of using the potential of the whole airport to develop wider revenue streams.

“That can ensure the airport is a viable business able to secure, and hopefully expand in the future, the air services that are so important to the area’s economic wellbeing.”