AN industrial estate is on the brink of expansion, with a third phase due to get under way.

All of the extra 20 acres being developed at South Church Enterprise Park, near Bishop Auckland, are already allocated, with four major companies lined up to move in.

Business development service County Durham Development Company (CDCC) has a list of companies either looking for expansion space, or to move onto South Church from outside.

CDDC's managing director Stewart Watkins admitted that the lack of space was proving a headache for smaller companies needing more room to grow.

He said: "We are bursting at the seams. South Church is a big success story.

"It has grown and grown over the last two decades, and has been very successful.

"It is home to some very good companies, who work all over the world.

"But finding new land for industry is a problem, which is why we are trying to shoe-horn as many businesses in as possible.

"Small companies tend to grow incrementally, before being faced with a big decision when they run out of room.

"They have so choose between standing still or moving, which can be very disruptive. We can't always provide the right space for the firm at the right time."

Two South Church companies recently competed with an outside firm for a vacant unit on Longfield Road, which eventually went to Teescraft Engineering.

Disappointed bidder Freddy Bourdais, sales director at Plastic Mouldings Northern, said: "We are turning away customers, because we have run out of space. We stood still for four months while we went through the application process, then we didn't get it.

"We are desperate for more room. We are having to use every inch we have. CDDC offered us some Portakabins to use as offices, but it is manufacturing space we need, not offices."

The company has tripled its turnover since it set up in 2002