A GROUP working to improve the performance of the region's manufacturing industry has been given £9.4m.

Regional development agency One NorthEast has invested the money in the North East Productivity Alliance (Nepa) to ensure its work with companies continues until at least 2009.

The money will allow 14 engineers, chosen from companies in the region, to take part in the Nepa training programme and then work with management and shopfloor staff, passing on best practice and raising productivity.

The funding will also ensure the future of Nepa's Digital Factory project, which helps companies to adopt new technologies to boost productivity.

The funding brings the total amount invested in the Nepa programme by One NorthEast, the Learning and Skills Council and the EU to £17.8m.

David Allison, of One NorthEast, said: "This further investment in the Nepa programme is proof positive of the importance the regional development agency attaches to manufacturing.

"Manufacturing continues to be a cornerstone of the North-East economy, employing 169,000 people, contributing 25 per cent of its GDP and generating £2.6bn in wages every year."