SCOTTISH timber frame manufacturer Robertson Timber Products (RTP) has secured its biggest contract on the back of a factory that has yet to be built.

RTP used its proposed plant at Fox Cover Enterprise Park, in Seaham, east Durham, to attract £1.1m worth of business from David McLean Homes, which is building a luxury apartments development in Manchester.

Elgin-based RTP was been helped with its £5m timber plant by regional development agency One NorthEast, which owns the enterprise park and has awarded the company a £200,000 regional selective assistance grant.

The plant will enable RTP to increase its timber frame production four-fold. The company's turnover by the end of 2005 is projected to be more than £40m.

Building work will be completed in July and production for the Manchester contract will start immediately.

Paul Smollett, commercial manager for David McLean Homes, said: "We recognise that the speed of construction provided by timber frame will provide us with considerable benefits on a project of this size, and it will also provide our clients with environmentally friendly homes for the future."

Bill Robertson, executive chairman of Robertson Group, said: "There was no difficulty in choosing Seaham for a base for this expansion. Our move into North-East England in recent years has been met with significant success, by different parts of our group.

"We have had considerable assistance from One NorthEast, Easington District Council and County Durham Development Company.

"Through that, combined with our own considerable investment, we are confident of further growth, and RTP will become a major force in the growing UK timber frame industry."

Ken Greenfield, chief executive of East Durham Development Agency, said: "This represents a major investment for East Durham, and highlights all that it is a good place to bring business."