MICROWAVE maker LG Electronics is predicting a bright future for staff at its North-East plant with productivity levels at a record high.

Bosses at the Washington plant, which employs 250 full-time workers, say it recently moved back into profitability for the first time in a number of years. Twenty temporary staff have recently been taken on and more could follow.

The picture at LG Electronics contrasts sharply with that experienced by Japanese firm Sanyo, which shut its microwave oven operations in Newton Aycliffe and Thornaby two years ago.

It said the loss-making operations were no longer commercially viable, blaming cheap exports from South Korea and China for contributing to its downfall.

Geoff Hood, head of human resources at the LG Electronics Washington plant, said the Korean-owned firm acknowledged difficulties in the worldwide market, but had been able to ride out the slump.

The plant recently produced a record 300 microwave ovens in one hour and expects to hit its target of producing 1.2m ovens this year.

Mr Hood said: "We have seen what has happened to competitors like Sanyo and are fully aware of how difficult it is to compete with cheap labour costs in the Far East and China.

"What we have tried to do here is invest in world class techniques and technology.

"This, combined with strong leadership and a quality workforce on good terms and conditions has led us to become something of a success story. We have recently moved into profitability from previously being a loss leader and are in the middle of probably our most successful year since the plant opened in 1995."

LG Electronics manufactures microwave ovens under its own name and for other brands, such as Currys, Matsui and Panasonic.

Mr Hood said: "We realise we are in a very difficult marketplace. Customers want a reduced price and an increased quality, which is what we are trying to give them.

"We are very pleased with production levels at the plant at the moment and if we keep them going we may hopefully be able to increase employment here."

* The Northern Echo inadvertently carried a picture yesterday of the LG Electronics plant in Washington in connection with a story about the closure of an LG Philips Display factory, also in Washington. We are happy to make it clear that the LG Electronics plant is not under threat and apologise for the error.