ALMOST 700 jobs will be created and safeguarded in the region after a consortium of small engineering firms joined forces to secure a multi-million pounds cash injection.

The individual members of the County Durham Engineering and Manufacturing Forums knew that they had little chance of winning cash from the Regional Growth Fund if they bid separately as the fund would only accept bids worth £1m or more.

The decision for seven small firms to rally behind a joint application has paid off with the Government's flagship enterprise scheme backing the group to create 334 jobs and safeguard a similar number. The move will see the RGF money matched with private funding to create a £7m funding pot.

Steelwork specialists Raisco of High Etherley near Bishop Auckland, Shildon family run engineering company Bignall Group, engineers Permoid and developers Cartlton & Co, both of Newton Aycliffe were South Durham's representatives in the group. Derwentside companies Hiatco, Dyer Engineering, and TLS were also part of the successful team.

Darren Race, Chairman of South Durham Engineering and Manufacturing Forum, said: "This was a unique way for small businesses to access the Regional Growth Fund.

"The successful outcome will provide opportunities for skills development and apprenticeships, as well as facilitate sector development in the Engineering, manufacturing and process industries. In addition, we are currently developing a business support package which will stimulate further growth and supply chain development across the county.

"The collaboration of the seven companies involved is an excellent example of the work the Forums carry out and highlights the important benefits of membership."

Shaun Stuart, director of Newton Aycliffe-based consutlancy Wallworth Associates, which helped to lead the bid, said: "This is a very significant boost to local communities and will help the private sector to drive local growth.

"Among the projects included in the bid are investment in new premises as well as the refurbishment of existing premises, investment in research and development and new technology, the launch of new or improved products and services as well as countless training opportunities for management, staff and apprentices.

"At a time when funding for small businesses is increasingly difficult to access this money will allow a number of vital projects to progress. A lot of hard work went into this and we are delighted to see a successful outcome."

The bid represented the latest coup for County Durham's Engineering Forums after the success of Oktoberfest 2011, the North East's largest engineering and manufacturing exhibition which attracted about 90 exhibitors and 900 visitors.