A NORTH-EAST car parts maker has been handed a multi-million pounds vote of confidence from one of the world's leading motor manufacturers.

The deal with car giant Honda will help to ensure that Stockton-based Nifco will move to an £8.5m state-of-the-art factory in the new year with a booming order book.

Bosses at Nifco's parent offices in Japan were taken aback when they heard that their Tees Valley counterparts had stolen a march on them by being asked to make a range of parts for the Honda CR-V 4x4 vehicle, which is assembled at Hondas plant in Swindon.

About 40 North-East jobs will be created and safeguarded by the order to make plastic components including number plate holders, wheel arch liners and finishes for door pillars.

"This represents a paradigm shift in our relationship with Honda," explained Managing Director Mike Matthews, who began his career as an apprentice tool maker at the Yarm Road plant in 1985.

"Even Nifcos Japanese business doesnt have a deal like this with Honda. Being asked us to make such a wide range of parts is a massive vote of confidence for Tees Valley engineering," he said. "With Honda we have gone from a £500,000 programme 18 months ago to a programme worth £5m. I am confident that they will be so impressed with what we can deliver it will lead to even more business."

Nifco, which supplies components for almost every UK-made car on the road, has recruited more than 50 members of staff over the past six months, which has taken its headcount to 250. That number will rise to more than 300 workers following the move to its new site on Durham Lane, Stockton where £11m is being invested on new plant and equipment.

The Northern Echo was given a sneak preview of the purpose-built site yesterday. Its single span roof sits eight metres above floor level - flooding the building with light and enabling the company to install cranes and larger machinery which will boost production. It is here that parts will be made for revolutionary vehicles such as the Nissan all-electric Leaf.

Supporting the ethos that production sits at the heart of everything the company does means that offices at the new plant will have a window that looks into the shop floor.

"Down there is what this place is all about," said Mr Matthews, speaking from the shell of a first floor room that will become his new office.

"Everything we do will be geared towards supporting production. At the end of the day that is the be all and end all.

"What we have achieved in the 44 years at the old site has been remarkable. But this building is equipped for 21st century advanced engineering. From here we can compete with anyone."