ZERO-EMISSION vehicle maker The Tanfield Group's Stateside expansion ambitions were boosted yesterday with the endorsement of a major US broker, and said the firm could potentially earn hundreds of millions of pounds from the continent.

New York firm Wm Smith has produced a special opportunities report on the Washington, Wearside- based company, which is looking to become a major player in the $4bn US zero-emissions market.

And it predicts that even initial demand from US customers for vehicles from Tanfield's three main divisions - Smith Electric Vehicles, UpRight Powered Access and Snorkel - will be for orders for "hundreds rather than single digits".

Such demand could be worth hundreds of millions of pounds to Tanfield, which last year saw turnover double to £123m.

Wm Smith also said demand for Tanfield's vehicles is expected to be at least as strong as in Europe - where the company has won orders from some of the continent's biggest delivery fleets - but will "ramp more quickly".

The report said: "Recently, United Parcel Service announced its pursuit of various alternative fuel vehicles to test in their fleet.

"With nearly 214,000 total fleet vehicles between UPS, Federal Express and DHL, we believe the shopping company customer represents a significant opportunity for Tanfield.

"Even a one per cent penetration could result in 2,100 units."

Tanfield has recently unveiled two new models - the Ampere and Faraday II - in partnership with US-based motor giant Ford, which have been tailored to the North American market.

The company - which is due to expand into a second site in the North-East in the next few months, immediately creating 300 jobs - is opening two new factories in North America to increase production as much as five-fold, from 1,000 vehicles a year to 5,000 next year.

It is understood that Tanfield has identified three possible sites, with the first of its factories opening this summer.

Tanfield has often spoken of its desire to increase its presence in North America, and recently predicted significant opportunities in the US as a result of increasing demand for electric vehicles and fiscal penalties for high-polluting vehicles.