NORTH-EAST companies could cash in as a result of strengthened links between the region and Sweden.

A dedicated North-East chapter of the Swedish Chamber of Commerce hopes to forge direct business links and facilitate both inward and outward investment.

Sweden already shares a number of common growth industries with the North- East, including renewable clean energy, information and bio technologies, health care and life sciences.

Yesterday, on a visit to the region, the Swedish ambassador Nicola Clase opened the new chapter as part of a oneday trade seminar on doing business in the North-East and Sweden.

She joined Caroline Theobald, a Swedish consul based in Newcastle and chairman of the new chapter, on a visit to Durham-based construction company Esh Group.

The company has developed Climat-Hus, a range of family homes, in partnership with Swedish timber house designer and manufacturer Trivselhus, at The Grange, in Bowburn, near Durham.

The homes – which it is claimed could lead to zero energy bills – are powered solely by electricity and are almost 100 per cent airtight, as well as having highly insulated building fabric.

They use a range of renewable technologies and are eligible for Government-backed cash incentive schemes Brian Manning, chief executive of Esh Group, which employs more than 1,000, said: “This is a story that’s good for the North-East, good for Sweden and good for the planet.

“Esh Group’s partnership with Trivselhus also has potential to create opportunities for jobs in both companies.”

Referring to the new chapter, Annika Wahlberg, managing director of the Swedish Chamber of Commerce, said: “We did a trade mission in June to the Swedish capital Gothenburg and realised how much interest there was from North-East companies.

“There’s obviously a geographical connection between the areas, and clean technology is as big in Sweden as it is in the North-East.”

Ms Clase said the tie-up between Esh Group and Trivselhus was a fine example of fruitful business co-operation between the UK and Sweden.

She said: “They have set a great example which is a beacon for those already involved in the new chapter and those we wish to attract.”

Annual exports from the North-East to Sweden total about £141.5m.

As well as the Esh Group, other North-East companies doing business with Sweden include Annfield Plain-based Ameeca, whose MP3 audio system Storyphones is used by schools world-wide.

In the UK, there are about 1,400 Swedish companies, including 30 in the North-East.