DEMOLITION work has begun to make way for a £35m development that will transform a former factory site.

The former Viasystems factory, on North Tyneside, will be turned into office accommodation.

Quorum Development Partners has appointed Thompsons, of Prudhoe, Northumberland, to demolish the former Viasystems printed circuit board factory, which was mothballed following its closure in 2002.

The 535,000sq ft factory will make way for 1.5 million sq ft of office space at Balliol Business Park East.

The early stage of the demolition involves salvaging tons of galvanised steel from inside the factory.

Steve Davis, director of Quorum Development Partners, said: "The demolition of Viasystems is a magnificent sight to see and an exciting development that signals the start of a major investment and economic redevelopment.

"We are building an office scheme in a landscaped setting which aims to capture a significant share of the UK's inward investment market within the governmental, business and financial services sector."

Quorum's development has secured private investment of more than £35m to develop two buildings in Benton Lane and another unit nearby.

John Thompson Junior, of Thompsons, said: "The North-East is currently undergoing dramatic change, with huge investment in new buildings, many of which, like this development, are constructed on brownfield sites."

The site provides a natural extension to the Quorum development which recently attracted the Inland Revenue and more than 600 jobs.

Published: 18/05/2004