AN engineering firm has pledged its future to the region after unveiling plans for a multi-million pound headquarters.

Switchgear maker VA Tech Reyrolle sparked fears that it was to leave the area when it struggled to find a site on which to build a centre for its 300 office workers.

But the company has confirmed it is staying, and has submitted a planning application to South Tyneside Council for a 30,000sq ft building at the Monkton South Business Park.

Richard Snaith, VA Tech director responsible for the project, said: "This planning application demonstrates the commitment of the company to the area and, importantly, our employees, who will benefit from continued employment in South Tyneside."

The company hopes to be ready to move part of its operation to the building early in 2005.

The manufacturing side of the business, with its 500-strong workforce, will remain at the Hebburn premises.

Mr Snaith said the design of the building, pictured above, will make maximum use of the corner site on the junction of Mill Lane with the A194 main route into South Shields.

The 20-acre space created at Hebburn as a result of the move has been sold to Persimmon Homes, which considering building a housing estate on the site.