ABOUT 1,000 jobs could be created in the North-East if, as expected, an American electronics giant announces plans to buy the mothballed Siemens plant today.

The state-of-the-art £1.1bn North Tyneside factory, which closed in 1998 with the loss of 1,100 jobs, looks set to be bought semiconductor group Atmel, of California.

Top executives from the company have flown into London to reveal plans for the factory, which closed after just over a year's production.

If the deal goes ahead, the plant could reopen by Easter, creating 500 high-tech jobs in the first year, followed by at least 500 more in the second year of operations.

Atmel, which formed in 1984 and is now a world-wide leader in the design, manufacture and marketing of semiconductors, is thought to be the third American group that has expressed an interest in the plant.

After two failures to clinch a deal, civic leaders are hoping it's third time lucky.

Deputy leader of North Tyneside Council, Councillor Eddie Darke, said: "I understand we are very, very close to a deal. We have been here before with other people, but this time I think it is different and we expect it to go ahead."

Industry experts say Atmel would probably start operations quickly to maximise the plant's potential. The plant has 4,000sq metres of cleanroom, which would give it a nine-month lead on producing chips compared to having to build a factory from scratch.