INSECURITIES created by a fall in exchange rates are partly behind a Danish food container company taking over an historic North-East packaging plant.

Earlier this month Danish firm Faerch Plast said a significant number of jobs would be created after it bought the facility belonging to Veriplast UK, known locally as Mono Containers, at Dragonville, Durham City.

Faersch Plast makes food trays used for ready meals and fresh meat.

Chief executive Lars Gade Hansen said: "The move means economic security. Over the past four years, we have witnessed a sharp fall in the exchange rate for the British Pound against the Danish Krone.

"The insecurities this has created for us, as well as for our customers, will be reduced by manufacturing a large part of the plastic packaging in the UK."

Faerch Plast revealed that a large part of its production for the UK market will be moved to the Durham plant.

Faerch Plast has also bought a plot adjacent to the new factory to allow for further expansion as demand increases.

Over the next six months the plant in Durham will be readied for production.

The factory buildings started operating under the Mono name in 1946, making ice cream tubs for Walls and Lyons.

Veriplast has offered its 67 workers the choice of moving to one of its production sites in Holland or taking redundancy, although Faerch Plast has not ruled out taking on former Veriplast staff.