CONSTRUCTION companies from across the region are joining forces to bid for national contracts.

Seven companies, worth an estimated £150m, will join forces today to create Investors for North-East Limited (I4NE). The organisation is being formed to fight for the region's construction work that goes to companies based outside the North-East.

The announcement will be made at the opening of the Esh Group's new headquarters in Bowburn, near Durham City, which will be carried out by Newcastle United manager Sir Bobby Robson.

The site covers more than nine acres and represents an investment of £3m by the company. The facilities include its head office, fabrications shop, plant yard, workshops and stores.

The seven regional construction SMEs (small to medium-sized enterprises) joining forces include Lumsden and Carroll (the civil engineering section of the Esh Group), Hall Construction Services, Coupe Construction, Fred Mence, New County Road Surfacing, Northumbrian Roads and Rainton Construction.

Brian Manning, chief executive of the Esh Group, said: "Investment and the region are at the heart of this joint venture. All the companies forming I4NE are local, share common values and objectives and are highly technically competent.

"Combined, we represent £150m annual turnover and jointly, we re-invest around £140m in the region each year through our supply chains and employment of over 1,500 people.

"At present, small is not beautiful in the construction sector.

"SMEs are increasingly overlooked - preference is given to larger national contractors based outside the region.

"The result is that wealth generated in the North-East is being bled away.

"As I4NE, we are united in our aim to compete head-to-head and to re-invest in the North-East from within."

Chris Dancer, managing director of Northumbrian Roads, said: "The combined turnover of I4NE is the equivalent of the total highways budgets for the county councils and metropolitan councils in the region.

"That is a considerable injection of spending power to the local economy.

"We know that by working together under I4NE for selected jobs, we will be benefiting the region significantly."