ONE of County Durham's largest private employers last night released details of its £15m move to a new factory which will safeguard jobs for at least 20 years.

Thorn Lighting, based in Spennymoor, is moving to a purpose-built factory on the Green Lane Industrial estate in the town.

The move will secure the 700-strong workforce of Thorn, and its sister company Tridonic Atco.

Thorn is based on the Merrington Lane site. Production will continue there until the new factory is completed in 2008.

Unions last night heralded the move as a vote of confidence in British manufacturing.

Jeff Morland, of the Amicus union, said: "People should not underestimate this development. At a time when many UK-based manufacturing facilities have relocated to the Far East or to cheap labour countries in Eastern Europe, Thorn is putting faith in its Spennymoor workforce and investing in Britain."

The new plant will be more efficient, enabling the site to compete with emerging economies, and keeping both research and development alongside manufacturing production in Spennymoor.

Engineering services firm Amec's Darlington division has been awarded the contract to project manage and construct the new plant.

Thorn, which is owned by Austrian company Zumtobel, which has sites across Europe and in China, is applying for planning permission from Sedgefield Borough Council at the end of this month.

If plans are approved, the current factory site could be sold for housing, once production moves.

Since being set up in the 1950s, Thorn's Spennymoor site has become one of the county's largest private employers. But the layout of the factory is inefficient, resulting in higher operational costs.

The move will make the business more sustainable and competitive.

David Johnston, operations director of Thorn, said: "This is a tremendous opportunity for the retention and future of an internationally important company within Spennymoor.

"The proposals will secure employment and the future of Thorn Lighting within Spennymoor and the North-East."

Glyn Hall, director of neighbourhood services at Sedgefield Borough Council said: "We will be working closely with the Thorn Group, a long and established employer in Spennymoor. We are greatly encouraged that the Thorn Group wishes to remain and relocate to a new state-of-the-art plant in the town."

The Green Lane industrial estate is also home to Black and Decker, which announced in 2002 that it was axing 950 jobs.

* Thorn sister company Tridonic Atco has increased its workforce by 15 per cent after seeing a rise in orders.

Tridonic, which is based at the Thorn site in Spennymoor and will also be moving to the new factory, is also investing almost £700,000 in new machinery.

The equipment will be moved to the new factory once it is ready.