AN EXPANDING call centre firm is creating 80 jobs in North Yorkshire.

Leeds-based 1st Locate will open a Scarborough base in August. It will initially recruit 40 staff, but plans to double this by the start of next year.

The company, which employs 50 people at its Leeds headquarters, has a client list including Powergen, Yorkshire Water and Scottish Power.

The new centre will be located in Scarborough Business Park, near Eastfield.

Andrew Barclay, managing director at 1st Locate, said: "Our new call centre in Scarborough will show that we can compete here in the UK in terms of productivity, costs and in the quality of service.

"As our operation expands, we need to be able to ensure a good supply of high-quality people.

"Scarborough is an ideal location because the labour market for the call centre industry is as yet untapped. We see great potential here."

He said the centre was needed to service existing contracts, and more jobs would be created if it wins new business.

The company is investing an initial £250,000 in the site. It has also received an undisclosed amount of European funding, through Scarborough Borough Council's regeneration team, together with york-england.com, the inward investment agency for North Yorkshire.

Adam Purser, the agency's marketing director, said: "The decision by 1st Locate to open its new call-centre in Scarborough is a very positive development for the town.

"Not only will it help create new jobs in the area, but the new call-centre will also help bring a new dynamic to the local business community."

Coun Tom Fox, the council's portfolio holder for economic and community development, said: "This is a very exciting development.

"It is a relatively new market for our borough, but one that I'm sure will go from strength to strength."