MAJOR investment in new facilities by a family-owned seal manufacturer will create new employment and safeguard existing jobs.

Nicholsons Sealing Technologies is moving to a 50,000sq ft unit on the Greencroft Industrial Park, near Stanley.

The new premises will allow the firm to merge its operations from two existing sites, in nearby Hamsterley and Shotley Bridge, near Consett.

Managing director Jeremy Nicholson said: "We have reached the stage where we need to increase output in order to meet demand from existing and new customers in a highly competitive global market."

Nicholsons was established in 1923 and employs 130 people. It specialises in high temperature metal seals and gaskets used by the aerospace, automotive, offshore, and power generation industries. Clients include Rolls Royce, Pratt and Whitney, Siemens and the Cummins Group.

The firm employs 15 people at Corru-Seals Inc, its US sales and manufacturing base.

The expansion will see it make 'substantial investment' in new plant machinery, creating 20 new jobs and safeguarding a further 34.

The Derwentside Industrial Development Agency (DIDA) helped the firm to secure a £249,000 expansion grant through One NorthEast.

Mr Nicholson said: "This is a major project for us and DIDA's experience and support has been invaluable."

Eddie Hutchinson, DIDA chief executive, said: "Nicholsons is a well-established company with many years of experience.

"It is a Derwentside company competing successfully in a global market and DIDA is pleased to have been able to help with this relocation that will take it on to the next stage of its development."

The firm plans to be operating from Greencroft by the end of the year.

One NorthEast director for business and industry David Allison said: "It is essential that these skills are kept in the North-East and we are delighted Nicholsons can continue to thrive in Derwentside.

"The creation of 20 new jobs plus the 35 that have been safeguarded is fantastic news for the local economy and will provide the foundation for this company to further enhance its already excellent world-wide reputation."