A major steel manufacturer is considering investing in the region, a move that could bring up to a hundred jobs and thousands of pounds' worth of investment.

Viraj Alloys, part of the Viraj Group - an Indian company with an annual turnover of more than $10m - is considering a move to the UK.

Viraj, which manufactures stainless steel, recently opened a base in Germany and is keen to expand into the UK.

An Asian business forum in the North-East is cultivating its links with Viraj in a bid to bring the company to the region.

Pharmacist Sunil Khanna, the first president of the forum, said: "I travel to India a lot and made the company aware of the North-East. I do not think they would have considered it if I had not mentioned it.

"They have asked for information on funding in the area and want someone from the North-East to go out to the German site to meet them. It is early stages, but it is looking quite positive."

The Asian Business Forum North-East has recently agreed a constitution and elected its officials.

Aims include attracting investment, promoting the economic contribution the community makes to the regional economy, and creating networking opportunities for members.

Regional development agency One NorthEast hopes the forum will tap into the close links Asian business people in the region have with the Indian sub-continent, in order to attract investment.

It is also hoped that, in the long-term, it will play an increasingly important economic and social role for North-East business people with roots in the Indian, Pakistani and Bangladeshi communities.

Mr Khanna, who is a partner with his family in a chain of four pharmacies, employing more than 60 people on Tyneside, is recruiting members, especially in County Durham and in the Tees Valley. He said: "It is estimated that Asian business contribute £72bn to the UK economy annually and that figure will only increase as more and more Asians achieve academic success, and with it business success.

The forum began with the help of One NorthEast head of inward investment Paul Taylor and Tyneside community leader Hari Shukla and has about 100 members.

Any business interested in joining the forum is asked to call 0191-281 2248.