CUMMINS is to create 25 jobs as engine production at its North-East plant is stepped up to meet a growing number of orders.

The jobs boost came as the international group announced record sales figures for 2005 of $9.9bn (£5.595bn), up 18 per cent on the previous year.

The company, which has its headquarters in Columbus, Indiana, in the US, said earnings before interest and tax were up 67 per cent on 2004, to $907m (£512.6m).

Its plant in Darlington, which manufactures diesel engines for boats, power trucks, diggers, construction machines and buses around the world, is set to increase output over the next two months.

A total of 25 production operator and materials handling positions are being created as the factory on Yarm Road aims to increase the number of engines it builds from 204 per day to 225.

The growth comes on the back of a general increase in orders - but has been boosted by the firm's successful bid to supply 900 ISBe engines for the public transport system in the Chinese city of Beijing.

"Cummins managed to beat the competition due to the ability to deliver engines within a shorter lead time," said Steve Nendick, the European communications director for Cummins.

He added: "These engines will join a substantial population of Cummins diesel and gas engines already working in Beijing, chosen due to their performance, durability and low emissions."

He said that the Cummins management team was working closely with the Amicus union to accelerate the recruitment process, in order to meet the increased demand as soon as possible.

"The commitment of Cummins Darlington to provide high-quality, durable and reliable diesel engines at competitive lead times puts them in an excellent position to meet the needs of our customers around the world," he said.

"This, coupled with the corporation's outstanding results in 2005, bodes well for the future."

Cummins chairman and chief executive Tim Solso said 2005 had been the best year in the company's history.

"We achieved record revenue and record earnings for the year. All of our businesses are performing above or near record levels," he said.

Mr Solso added: "Nearly all of our markets are strong and growing, our cost structure is leaner and improving, our improved efficiency has led to better gross margins and a greater percentage of our sales are going to the bottom line."

Cummins is one of Darlington's biggest employers, with about 800 staff, and last year the plant produced more than 40,000 engines.