A £5M incubator facility for green businesses is to be constructed on the site of a former circuit board factory.

Up to 41 office, workshop and hybrid units will form the Green Incubator, on brownfield land at the former Circatex site, in Eldon Street, South Shields.

It will provide managed workspace and business support for new and growing companies in the low-carbon and environmental sectors.

The three-storey facility, due to open in June next year, is expected to create 95 construction jobs. As a direct result of the project, 44 jobs will be safeguarded and 44 created, while 35 small and medium enterprises will be assisted and have their perform- ance improved.

The project has £2.46m from the European Union’s European Regional Development Fund through regional development agency One North East, matched by South Tyneside Council, which is running the project.

Councillor Michael Clare, who has responsibility for enterprise, said: “The Green Incubator units will enable us to attract businesses operating within the low-carbon and environmental industries sectors.”

Lesley Calder, of One North East, said: “The Green Incubator project will help steer business growth and employment opportunities towards the South Shields area, taking advantage of the future growth in low-carbon and environmental business sectors.”

Construction firm Robertson, based in Hebburn, is carrying out the work, which will start in May.