ENGINEERING services company Amec announced last night that its French division is for sale.

Amec is selling its Spie division, which offers engineering services in France in the transport, telecoms and nuclear sectors.

The company has two further divisions - one focusing on energy and process industry and the other specialising in UK infrastructure, such as property and windfarms.

It is now considering separating the energy and infrastructure businesses and listing them separately on the stock exchange.

The company employs about 600 people in the North-East, with more than 400 at its industrial division in Darlington and 200 engineers at its Tyneside fabrication facility, which has been mothballed.

The separation could affect the North-East operations, but an Amec spokesman said such a move would lead to growth and there would not be an impact on jobs.

Chief executive Sir Peter Mason said: "It (is) increasingly clear that we do not have the resources to fully exploit the prospects in all three of our businesses and still achieve the growth and returns we want."

Analysts estimate that Spie is worth about £350m, but believe the sale price could be higher.

Yesterday's proposed shake-up comes less than 24 hours after Amec was linked to a £1.2bn approach from Spanish company Acciona.