Delivery company TNT yesterday launched electric vehicles made by The Tanfield Group into its European operation, in a move that could lead to the creation of hundreds of jobs in the North-East.

Last year, TNT agreed a deal with Tanfield's Smith Electric Vehicles division to test 50 of its zero-emission Newton and Edison models in its UK operation, in a deal that could be worth up to £24m to Tanfield, of Washington, Wearside.

Yesterday, TNT launched five Smith vehicles into its operation in Rotterdam, with a view to placing a bulk order for use throughout Europe to bring it in line with rules on reducing carbon emissions.

A spokesman for Tanfield told The Northern Echo that if such an order came to fruition, it could lead to the creation of between 200 and 400 jobs at its North-East headquarters, to add to its workforce of more than 700.

The potential European expansion comes weeks after Tanfield unveiled plans to push ahead with its efforts to gain a stake in the $4bn US zero-emission market, by investing £30m in two new factories, the first of which will be operational by early next year.

The group also recently acquired US aerial platform maker Snorkel for £50m to help increase its stake in the market.

Increasing the group's presence in Europe and the US is a key ambition for Tanfield over the coming months and years, with the business expected to capitalise on the increased international demand for environmentally-friendly modes of transport.

Kevin Harkin, sales director of Smith, said: "These trials are our first step into mainland Europe but there is an enormous untapped market for commercial electric vehicles on the continent and we expect further orders to follow."

Peter Bakker, chief executive of TNT, said: "We are very aware of the impact of our operations on the environment and recognise that we contribute to the problem of climate change. Hence, we feel it's our responsibility to contribute to a viable long-term solution.

"TNT foresees electric vehicles will become a key component for future super-urbanised inner city pick-up and delivery networks as more and more restrictions are imposed on emissions in urbanised areas."