THE progress of Wilton Engineering and Chieftain is the latest of several positive developments in the North-East fabrications industry.

The sector is regarded as having significant potential for growth and is a central part of the region's future economic growth.

In the past few months, the sector has seen spectacular successes.

The Teesside Alliance Group consortium has recently won a £250m deal to build at least two drilling rigs in a disused shipyard in Haverton Hill, on Teesside, creating up to 3,000 jobs.

All three companies in the consortium - Darlington's Cleveland Bridge, McGill Services and K-Home Engineering - are all expected to reap significant rewards.

The region's best performing Stock Market-listed company is Newcastle-based Wellstream, which has had its best year.

Turnover has jumped by 81 per cent after several deals and its share price has soared from 320p to a high of 1,450p ten days ago.

The achievements of the sector - and of Wilton Engineering and Chieftain - has been praised by the region's leading business figures.

Ian Williams, director of business and industry at regional development agency One NorthEast, said the sector was well placed for growth.

"It is very clear that this whole industry - including the oil and gas services, subsea sector and engineering design - is very strong at the minute across the region, with significant opportunities being pursued from the Tyne to the Tees," he said.

"Going forward, the outlook is very positive, and there are really optimistic times ahead for this industry. As a region, we are well-positioned to take advantage of the opportunities on offer, and there are many at the minute, especially considering the price of oil.

"We have companies in this region that are global players and are competing on a world stage in the market.

"And as a knock-on effect, this has a big positive impact on the region - it increases the GDP performance of the North- East, can give work to local suppliers, and also create work in the region, as we have seen with Wilton Engineering and Chieftain."

James Ramsbotham, NECC chief executive, said: "This is tremendous news. The North- East has a rich pedigree and strong skills in the fabrication sector and it is great to see that this market place is buoyant.

"We are hearing a great deal of doom and gloom about the credit crunch, but these two jobs announcements show that this negativity is unfounded."