TEESDALE has lost out on a £350m pharmaceuticals factory deal that could have created 1,000 new jobs.

Glaxo had been considering Barnard Castle as a potential site for the new plant but the company has announced this morning that it will build the facility - its first in 40 years - in Ulverston, in Cumbria.

In a double blow to Teesdale the company also said it was investing more than £100m in its plants at Irvine and Montrose, in Scotland.

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And it said the company's ultimate investment in Cumbria could be as much as £700m.

The new biotech plant, which would have secured Glaxo's long term future in Barnard Castle, will take six years to build.

The announcement will come as a blow to the North-East pharmaceuticals industry which is the region's second largest exporter after the motor industry.