A Darlington business is hoping to take advantage of its expertise in microchip tracking technology.

Agility Systems, part of Chelford Group, is creating a subsidiary company to help businesses take advantage of Radio Frequency Identification Technology (RFID).

Based at Lingfield Point Business Park in Darlington, RFID Solution Centre will be led by Agility managing director Kevin McDaid and is likely to create a number of jobs over the next few years.

RFID uses small microchip transponders to store data. The technology is most commonly used to help identify lost pets where a chip is inserted beneath an animal's skin.

However, the technology has further applications in product tracking. High frequency chips keep tabs on library books, pallet tracking and even airport luggage handling.

RFID technology is also used in the US for road toll schemes. Michelin is also testing a scheme that will see tiny chips embedded in vehicle tyres.

The technology is also used to help monitor earth tremors and warn of impending earthquakes.

Agility Systems' off-shoot - RFID Solution Centre Ltd - has been established to develop the potential of the group's consultancy services and software to help integrate the technology in customers' businesses.

It will provide businesses with a "one stop shop" for all of their RFID requirements.

Experts will then visit companies, carry out analysis of their existing practices and help them to apply the technology to their business.

RFID Solution Centre has already formed alliances with companies such as OAT Systems, Intermec and GeoPost. Intermec, which has more than 30 years' experience of developing revolutionary technologies, has been chosen as the company's preferred RFID partner.

Mr McDaid said: "Research has shown that the market is demanding a single point of reference for all RFID requirements.

"Our aim is to help business users to unlock the potential of this technology and gain significant returns on their investments.

"Investing in both technology and applications for the supply chain will offer many opportunities in a niche market that is yet to be fully exploited."