ENGINEERING group Siemens will re-launch part of its North-East business today after a £10m investment programme.

The German company has changed the focus of its power generation business on the site of the former Parsons plant in Shields Road, Newcastle.

The overhaul followed the collapse of the world market for power generators in 2002, when half the workforce of 700 was laid off.

Siemens subsequently pulled out of manufacturing turbines. The restructured business now provides maintenance and servicing, although some components are still manufactured at the site.

Steve Scrimshaw, managing director, said: "Turbines represent a big capital investment.

"It is more cost-effective at the moment for companies to upgrade and improve them, than it is to build new power plants."

The company employs 350 people, plus 300 seasonal field engineers and has a turnover of £50m a year.

It is taking on another ten engineers and recruiting six apprentices.

The Parsons site was once one of the biggest employers on Tyneside, with 12,000 workers in its heyday during the 1960s.

Mr Scrimshaw said: "There is a lot of history and heritage associated with this site. While there has been a rationalisation in global manufacturing, this has given us the opportunity for a fresh start.

"We are happy now we have a platform to go forward."