A MAJOR Japanese engineering company is establishing its first European operation in Stockton, creating 67 new jobs.

Katmex is part of the worldwide Katushiro Matx company and produces steel components used in many different industries, including construction equipment, fork lift trucks and heavy plant machinery.

Explained Katmex managing director Ken Sakagami: "We are a heavy fabricating industry, which this region has been renowned for in the past."

A number of different agencies, including the Tees Valley Development Company, Stockton-on-Tees Borough Council, the regional development agency One NorthEast, the Department of Trade and Industry and the Invest in Britain Bureau all played a part in persuading Katmex to move to Stockton.

Stockton North MP Frank Cook said: "This is a marvellous vote of confidence in our area-and a tribute to all those agencies involved.

"We have a world-class reputation in the engineering field, with a superb workforce and the enthusiastic support of the local authorities and other agencies who all recognise the importance of attracting international manufacturing companies of this kind."

One NorthEast chief executive Mike Collier said: "Katsushiro Matex is welcome for the region as the operation utilises many traditional engineering skills, and also bring these up to date with the latest technology. It is pleasing to see the benefits of strong partnership securing the investment of a global industrial player."

Katsushiro Matex was established in 1962 in Osaka, Japan. It now operates on a global basis, with five factories in Japan, one each in China, Indonesia and the US, as well as the Stockton factory.

It employs more than 1,100 people worldwide and expects to create up to 150 jobs in Stockton.

The Stockton plant supplies major UK customers, such as the Komatsu plant at Birtley. It is developing business in Europe.