APPROVAL has been granted for a £420,000 business centre expansion, which is expected to create 20 jobs in an unemployment blackspot.

The new business units would be added to the multi-million pound business development at Villa Real, in Consett.

Funding has come from Derwentside District Council which has provided £150,000, the European Union Development Fund which has given £100,000 and the One NorthEast development agency which has provided, £170,000.

Work will start in the coming weeks and it is expected to open in October.

Last year, a larger £1m e-business centre, which created 45 jobs, was built. The main business complex was opened in the early 1990s.

Small to medium-sized companies have the chance to use Internet and other high-tech equipment at the new centres.

Leader of Derwentside council, Alex Watson, hailed it as a major success for the area. He said: "This can only be good news for our local economy.

"Many people think that only new economy businesses benefit from this type of technology. However, in reality, there are many traditional companies which are using the Internet to enhance their business development."

Economic development officer at Derwentside council Lynn Bryden said financial support had been forthcoming after previous successes. She said: "The demand has far exceeded our expectations."

Internet access is of a type which enables users to send and receive data at volumes and speeds greater than traditional access over the telephone allows.

Other recent good news for Derwentside has included the saving of 250 jobs at the former Aerospace Systems and Technologies plant, which was eventually bought out by Celtic Aerospace Ventures. But a dozens of jobs were lost when Elldis caravan manufacturers merged with another company last year.

The unemployment rate in Derwentside fell below eight per cent last year, at a time when the population rose to 88,200 from a low of 85,000 in 1990.

In 1980, at the time of the Consett steelworks closure the population of the district stood at 105,000.

Firms interested in moving into the business centre later this year should contact Derwentside council on (01207) 218000