A DERELICT forge, which has blighted a town for years has finally been bulldozed to make way for a £15m superstore.

Work has finally started on clearing the derelict buildings at Wilson's Forge, in Bishop Auckland. Supermarket chain Asda plans a 45,000sq ft store on the site that will create up to 200 jobs.

The store finally got the go ahead in February this year by Secretary of State Stephen Byers, two years after the controversial project was the subject of a two week inquiry amid concerns that it could be regarded as an out-of-town development.

Property communications manager at the company Simon Leonard said he was delighted that work had finally started.

He said: "We are still on course and hopefully the store will be open by the end of this year.''

Mr Leonard also said that the company was still within its budget of £17.5m, which is being spent on the development.

Asda still has an outlet at the Newgate Centre, Bishop Auckland, and is committed to a £2m deal to give the shopping centre a massive facelift bringing the total investment of £17.5m to the town.

It is hoped the refurbishment will encourage retailers to expand or attract new businesses to Bishop Auckland.

Although the company has already got outline planning permission, it is still waiting to hear from Wear Valley District Council about an application made in February to determine the final details of the development.

It is hoped a decision on the detailed planning application will be made in the next few weeks.

The Wear Valley Hotel, which has been standing derelict since a fire in 1994, will also be demolished to make way for offices.

The development has so far been backed by MP for Bishop Auckland Derek Foster and Wear Valley District Council leader Olive Brown. Coun Mrs Brown said at the time that it was wonderful news for Bishop Auckland.'