ONE of the country's leading business figures is to head the Tees Valley's new Urban Regeneration Company.

As revealed in the Northern Echo yesterday, Peter Middleton, transaction director with Japanese investment bank Nomura International, is to chair the organisation.

It was announced by the Government as part of a package of support measures following major job losses in the steel industry.

In his new role, Mr Middleton, 61, will work closely with development agency One North-East, local councils and the Tees Valley Partnership, led by Alistair Arkley.

He will be involved in delivering a number of key projects, including further expansion at Teesside Airport and enhancing Darlington's role as a gateway to the Tees Valley and the region as a whole.

Mr Arkley said: "This is a real vote of confidence in our vision for the new Tees Valley that such an experienced and able individual is prepared to join with us in making it happen."

Born in Middlesbrough, the son of an ICI foreman, Mr Middleton went to St Mary's College before studying economics and social studies at Hull University, and philosophy at the University of Paris.

After 16 years in the diplomatic service, he entered industry and held chief executive posts with the Thomas Cook Group, Lloyds of London and Salomon Brothers International.

Mr Middleton will continue to live in Buckinghamshire, but will make regular visits to the Tees Valley.

He will be heavily involved in the search for a chief executive for the company.

He said: "I believe that, by working together with the many other interests already involved in developing the vision for the Tees Valley of the 21st century, the company can make a specific contribution in attracting the interest of national and international business, and persuading them that the Tees Valley is an area in which they should invest for the future."

Mr Middleton is to be joined by other leading business figures from the North-East on the board of the company.

These will include Mr Arkley and Dr John Bridge, chairman of One North-East.

Mr Arkley said: "The company is a key element in the ambitions for the area embodied in the Regional Economic Strategy and the Tees Valley Vision study.

"We always knew that, if it was to be effective, it had to be led by someone of the highest calibre.

"I believe that is exactly what we have achieved through Peter's appointment. His business record is impeccable, including, for example, leading Thomas Cook from near-bankruptcy to record profits and effectively rescuing Lloyds from financial disaster.

"What is more he knows the Tees Valley and has a strong personal commitment to the area.