TRIALS of two prototype vehicles from engineering company The Tanfield Group could lead to orders worth £24m and significant job creation in the region, it was announced last night.

Two divisions of parcel delivery service TNT are testing the first two Newton zero-emission vehicles, made by Tanfield's Smith Electric Vehicles company.

The 7.5-tonne vehicles - one to be used by TNT Logistics in its contract with coffee retailer Starbucks, and the other by TNT Express for business-to-business parcel delivery - are being tried by the company at their bases in and around London.

However, subject to a successful trial, both TNT divisions have plans to place a combined order for at least 400 more Smith vehicles over the next two years, which would generate a minimum of £24m for the group.

At the launch of the group's Newton vehicle in London yesterday, Peter Bakker, TNT's global chief executive, said the group was considering plans to introduce Newton vehicles throughout the company's international operation.

A Tanfield Group spokesman last night told The Northern Echo that if was to happen, the potential for revenue and job creation would be "massive".

The potential development comes only weeks after Smith struck a deal with California-based Enova to supply 120kw electric systems to power its zero-emission vehicles.

Tanfield predicted its turnover would grow to nearly £100m by the end of next year on the back of the announcement, and aid its planned creation of 400 jobs within the next three years.

Smith - the world's largest road-going commercial electric vehicle maker - is based at Tanfield's 250,000sq ft plant in Washington, Wearside.

The Tanfield spokesman said: "If they did decide to roll it out across the board, potentially that would be an order of about 3,000 vehicles.

"Undoubtedly, if we got such an order, there would be a significant impact on the size of our workforce. Even as it stands, this will have a really big impact on the North-East."

Tom Bell, managing director of TNT Express Services, hailed the announcement as "a huge step forward for our fleet in London".