It is hoped that thousands of jobs will be created after the investment of millions of pounds in the North East by the Government's Regional Growth Fund. Christopher Knox takes a look at how some of the money will be spent.

THE Government has awarded more than £50m to 14 companies across the North East in the first round of the Regional Growth Fund (RGF) initiative, which promises to create 5,216 jobs and safeguard 8,367 indirect jobs in the region.

The cash has largely been targeted at the region’s manufacturing and process industries, including car manufacturer Nissan, which hopes to create up to 1,000 more jobs at its Sunderland plant.

A number of companies are still waiting to hear exactly how much money they will receive, and the Department for Business, Innovation and Skills stresses the allocations are conditional and subject to a due diligence process.

However, this has not stopped some companies from announcing huge plans based on the grants, including Cumbrian Seafoods in Seaham, County Durham, which will use their allocation to convert an existing 130,000sq ft of storage space into a seafood manufacturing facility.

The development also promises to create work for an extra 100 staff at the site, where it already employs 500 workers.

The firm has already invested more than £20m in the four years since it opened its Seaham site where it manufactures a range of prepack seafood products for a host of UK retailers.

Its bid was a result of public-private sector partnership between Cumbrian Seafoods and the County Durham Development Company (CDDC).

CDDC managing director Stewart Watkins said: “It’s very satisfying to see one of County Durham’s flagship companies being recognised and supported in this way.

“This grant will allow this very successful business to develop further which can only be good for the region, and of course, it will provide a great boost to the local jobs’ market in an area which sorely needs new employment opportunities.”

Also successful in its bid was electronics company Houghton-le- Spring-based Connor Solutions, which will use the funding to add 20,000sq ft to its 30,000sq ft site.

The company, which was set up almost ten years ago, specialises in contract electronics manufacturing and carries out bespoke work for clients in the medical, industrial, audio visual, environmental, defence and aerospace industries.

Connor has been looking to move into more space-intensive manufacturing for some time, and is now hoping to add another 90 staff to its 150-strong workforce over the next three years, as well as grow its turnover from £13.3m to £20m.

Phil Hall, finance director at Connor Solutions, said: “We, along with a number of other manufacturers, were hit by the early days of the economic downturn.

“However, with the help of this funding, we are now looking to rebuild the business and push ahead with our plans for added plant and machinery.

“We are now making great strides in our efforts to become a one-stop-shop for clients looking for a company that can manufacture their products from start to finish.”

Among the projects unable to secure RGF funding was a bid worth £40m for a new conference centre in Gateshead and £8m for Newcastle’s flagship Science City development.

Liz Mayes, assistant regional director at CBI North East, said: “It is encouraging the North East has been successful in a number of the RGF bids and there are some exciting projects being supported which will help the private sector to grow.

“For those who weren’t successful there is round two, and other options open to firms looking to finance their growth in the coming years.”