THE North-East economy received a boost last night with news that hundreds of jobs are on the way.

About 600 of them will be created by KYE, which makes oil and gas rigs. It has taken over part of the former Odebrecht yard, next to the Riverside Stadium in Middlesbrough.

Another 280 will be created by pharmaceutical firm Avecia if it gains planning permission to expand it premises in Belasis Avenue, Billingham, for manufacturing bio-pharmaceutical products. It currently employs 140.

The planning application is due to be heard by Stockton Borough Council's Planning Committee today.

And a further 25 jobs are set to be created by Sunderland furniture firm SCS when it opens a £500,000 store on the Yarm Road Retail Park in Darlington in April.

KYE has signed a deal with Able UK to lease part of the former Odebrecht yard at Dock Point, creating 600 jobs by the end of next year.

KYE plans to offer employment to the former workforce of Odebrecht, wherever possible.

Under the agreement, Able will lease part of the 51-acre site at Dock Point to KYE until its new £6m facility at the Teesside Environmental Reclamation and Recycling Centre in Hartlepool is completed.

The Middlesbrough yard will then be demolished to make way for the site to be included in the next phase of the flagship Middlehaven development.

The news was welcomed by Neil Etherington, chief executive of the Tees Valley Development Company.

He said: "This is very good news for the area and proof that we remain a world leader in the oil and gas related industries.

"This is an industry that has been through considerable upheavals in recent years, but I believe that this announcement shows that there is a bright future in the oil and gas construction industry for the Tees Valley."