AN organisation has been formed to represent companies responsible for £8bn of the region's manufacturing output.

The North East Process Industry Cluster (Nepic) has 350 member companies, representing a quarter of the region's manufacturing base.

The companies directly employ 34,000 workers and support another 200,000 in the supply chain.

The cluster will give a voice to companies in the pharmaceutical, biotechnology and chemical sectors.

It is being backed by a £500,000 grant from regional development agency One NorthEast.

The money will be used to create jobs using a range of means, such as promoting new industry projects, influencing investment in companies and attracting science-based companies to the region.

It will also foster research and development, increase manufacturing capability and develop programmes to improve workers' skills.

The region accounts for 20 per cent of the UK's process industries.

Chairman Bob Coxon said: "Nepic will have a very positive impact on our industry sector and on the North-East economy.

"The creation of Nepic is both a statement of intent and a statement of faith in the future of the region."