THE company behind Newcastle Falcons' new stadium has signed £15m in contracts for the year with the agreement of a £3.7m joint venture in County Durham.

Metnor Construction, of Killingworth, Northumberland, will be working with City and Northern on a project in Birtley, near Gateshead. The pairing will share property sales and construction profits in a development deal in a move underwritten by parent company Metnor Group.

The project will see Metnor and City and Northern, of Newcastle, team up on land at Drum Industrial Estate. The development of 100,000sq ft of industrial units, with related infrastructure and landscaping, is already attracting interest from potential tenants and purchasers.

Work on the Birtley development, estimated to have a value of approximately £3.7m, began on Monday.

Keith Irving, managing director of Metnor Construction, said: "This partnership is a major boost for Metnor, and shows that we are a growing force in the region's property and construction sector, with a commitment to the region, and we are looking for similar partnership arrangements to grow the business.

Furthermore, it is a huge boost for our shareholders, who should also feel the benefit of the group's increased activity in this market."

The Drum deal follows a number of other major projects signed this year, including the £3.6m construction of a wing to Matfen Hall, in Northumberland, a £2m scheme at the Tyne Tunnel for UK Land Estates, and the £700,000 refurbishment of the World Headquarters nightclub in Newcastle.

The company is also carrying out the £1.5m refurbishment of Brown's Boathouse, in Durham, work on the Coyote Wild nightclub in Mansfield, worth £1m, and work on the Chase Bar, in Nottingham, worth £600,000.