A £1M SCHEME geared at regenerating the fortunes of a North-East industrial estate has been given a significant cash injection from Europe.

The £156,168 grant from the European Regional Development Fund (ERDF) will help finance a new networking centre, providing 12 extra business units on a 1.13 hectares brownfield site on the Glover Industrial Estate, Spire Road, Washington, Wearside.

The project, one of the first private sector-led initiatives to win Objective 2 European funding in the region this year, has the potential to create more than 70 jobs.

David Slater, director for competitiveness and Europe at the Government Office for the North-East, has called on more private sector organisations to apply.

He said: "This project not only helps support and encourage local small and medium sized businesses who wish to expand and grow, but also means a disused brownfield site will once again play a vital and productive part in the local economy.

"It is a prime example of how European funding can help the private sector to regenerate the area and create new job opportunities in the region."

The development is a joint venture between the Langtree Group and English Partnerships - networkspace Ltd - formed in 1999 as a response to the Coalfields Task Force recommendations to boost enterprise in the English coalfields region.

Langtree development manager Simon Peters said: "These high quality workspace units will be available on flexible lease terms to small and medium-sized businesses. There is a shortage of these units with very few having been built in the past ten years."

English Partnerships divisional director Euan Hall said: "These units will provide a stepping stone to enable new companies to get up to strength and performing well before they, hopefully, move on to greater things.

"The aim, too, to is to attract local businesses and get them to stay in the region."

The 12 units, which range from 1,935sq ft to 2,905sq ft, will provide 30,070sq ft of modern business space on flexible and competitive terms. Networkspace director John Downes said: "We estimate that upwards of 70 jobs could eventually be created at the new Glover networkcentre and look forward to talking to businesses in the Washington area to find the right solution to their property needs.