ENGINEERING firm Aker Kvaerner's (AK) troubled engineering services business was last night acquired by an industrial services company, safeguarding 160 jobs.

Hertel, which is based in Middlesbrough, announced it had added AK's engineering workshop and maintenance division to its business for an undisclosed sum and pledged jobs would be created in the Tees Valley as part of a £4m investment to strengthen its business.

In October, AK cut 40 jobs at its workshop business in Stockton after being forced to review its engineering services division because of a weak financial performance. Twenty jobs were also lost in Warrington, Cheshire.

Last night Hertel, which has an annual turnover of about £140m, confirmed the jobs of 160 people employed at AK's sites on Teesside - where at least 80 are based - Humberside and Grangemouth would be safeguarded by the move.

A spokesman told The Northern Echo that about 160 more jobs would be created in "all aspects of the business" within the next two years across the sites as part of a £4m investment.

AK last night said the sale came as a result of its desire to develop its core, white-collar engineering business, and said the future looked strong in that area of their operation.

The workshop division will be known as Hertel Total Asset Management, and takes the number of people working for Hertel in the North-East to about 600. The company has other sites throughout the Tees Valley, including its head office in Middlesbrough, and a marine unit in Wallsend, North Tyneside.

Hertel managing director Steve Tonks said the announcement was great news" for the Tees Valley.

He said: "We are safeguarding the jobs of 160 highly-skilled personnel in the Tees Valley and Humberside and taking advantage of Hertel's national and international knowledge and expertise in the Petro-chemical industry.

"This region thrives on the work of companies based in the Tees Valley process industry cluster, and this acquisition is a mark of our commitment to expand our presence in the area."

Martin Moon, director of AK's engineering services business, said it was good news for the workforce and the area.

He said: "This is a very positive move for everybody involved in the workshops and related support contracts - not only for the employment of our loyal workforce, but also because they will be able to continue with the important work we have been doing in this area."