THE North-East received a much-needed economic boost yesterday with the news that more than 200 jobs are expected to be created at a new factory.

Transmission and Lighting Ltd will make street lighting, masts and related products at its factory in Newton Aycliffe, County Durham.

The company, a subsidiary of the Balmer Lindley Group, initially expected to employ about 120 people when it bought the former Sanyo plot on the town's industrial estate two months ago.

But the addition of Europe's longest powder coating plant - used to paint poles - is expected to push the jobs total above 200.

The news is a shot in the arm for the region's ailing manufacturing sector, which has seen massive job losses in recent years.

Transmission and Lighting is spending £5m on redeveloping the former Sanyo site, which closed in the summer of 2001 with the loss of 284 staff.

Group general manager Mark Stayman said the company already had orders worth £6m.

He said: "We are generating a very healthy order book in a very short space of time."

The company is working quickly to develop the site, which is expected to be at full production by November.

Mr Stayman, who lives in Spennymoor, added: "This is a very prestigious site, which is what we're trying to promote our business to be."

Stewart Watkins, executive director of the County Durham Development Company, said he was delighted when the company confirmed its plans.

"The development company has been involved with them for over a year now," he said. "It was a matter of gently persuading them that this was the right site to be on.

"This is great news for the south-west Durham area. Manufacturing has seen some difficult times so an additional 200 jobs is very good news indeed."