A NEW start-up business in Darlington is helping utility companies cut costs and reduce traffic congestion.

Cobra Directional Drilling Limited, which uses a precision method of drilling to install pipes, has resolved a conflict of interests between two major businesses in Darlington.

Instead of digging trenches in roads to install gas, water and other cables, the precision drill, imported from the US, can pinpoint the area needed to a millimetre and lay pipelines.

The company started trading in June this year and its first major contract was for Mowlem Utilities, which needed to drill under the main road leading into the Cleveland Bridge depot in Darlington.

A Cobra spokesman said: "Cleveland Bridge said they couldn't dig trenches in the road because it is their route in and out and they are a 24/7 business.

"So Mowlem came to us to carry out the job.

"It is a bit of a niche for us because we are the only company in the North-East that uses this method.

"We are actually causing a bit of a stir nationally because we have come in and undercut all the other directional drilling businesses."

He said that Cobra looked set to keep expanding in the future, with Government and European Union legislation meaning more utility companies would have to replace pipes.

Water pipes have to be changed in line with new European Union rules, and cable television companies are laying new fibre-optic cables.

The spokesman said that a trial scheme running in Middlesbrough and Camden, London, for fining utility companies if they dig a road up for too long looked likely to be introduced in a Traffic Act.

He said: "That could mean big business for us because we can do it without having to dig the road up."

Cobra has two drilling operatives with at least ten years' experience and is planning to employ two trainees.

The business was set up with the help of Darlington Business Venture, which provides advice and support for new start-ups.