A SUPERMARKET deal that could give a North-East town a second new store and safeguard hundreds of factory jobs is expected to be approved next week.

Durham County councillors are being advised to agree to a plan from businessman John Elliott to demolish his Ebac factory, near Bishop Auckland, and build a 4,900sq metre superstore on the site.

Mr Elliott has named the likely buyer as Tesco, although no deal has yet been signed.

With a £45m Sainsbury’s store and cinema development by Terrace Hill already agreed nearby, this could give shoppers the choice of most of the big name stores within a small area of south Durham.

Mr Elliott says the move will secure the future of his Ebac workers, who make water coolers and dehumidifiers for an international market.

He is looking to expand into the refrigerator market, keeping jobs in the North-East, instead of switching manufacturing to Europe.

All three potential sites for a new base are in the same area of Bishop Auckland.

Durham County’s planning committee is expected to agreed to the development when it meets on Tuesday at County Hall.

A report from case officer Chris Baxter says that the new store and factory would be welcome investment, would regenerate the south Durham area and would create jobs.

It quotes evidence from planning consultants England and Lyle that another store would not harm Bishop Auckland town centre, but would keep more people shopping in the area.

Rival supermarket company Morrisons has objected, along with the agents for HeliosCity, developers of a retail site in Bishop Auckland’s North Bondgate area.

Terrace Hill director Duncan McEwan fears it could jeopardise its Sainbury’s and cinema development which includes Bishop Auckland Football Club’s new stadium.

He said his company’s scheme had not been “signed off” by the council, even though planning permission was granted last November.

He said: “We are still committed to the development at the moment. I don’t know how long this will go on but, unless work starts by the end of the month, the football club could lose its grant for the stadium.

“We estimate that the area is losing £1.5m worth of business for every month our scheme is delayed.”

Bishop Auckland councillor Rob Yorke said: “The important thing for Bishop Auckland is to get both developments moving forward, because both will be good for the area.