TWO car parts manufacturers have joined forces in a multi-million pound deal to create one of the region's largest privately-owned metal pressing companies.

Tolwood Limited, of Newton Aycliffe, and Newcastle-based Vickers Pressings, have joined together - and hope to increase sales and double turnover in the process.

The business will be known as Vickers Pressings Tolwood Automotive (VPTA) and will be manufacturing a wider range of products and assembles for use in UK car production and the overseas markets.

With a joint workforce of 370 employees, the companies hope to create a business with a press capacity of up to 1,000 tonnes, and a skilled workforce manufacturing complex car parts.

Tolwood's chief executive Geoff Marshall, who will be chief executive of the joined companies, said formation of the company was good news for Newton Aycliffe because it meant long-term job security for the employees.

He said it was a boost for the region's struggling manufacturing industry, which has most recently seen the loss of hundreds of jobs at Tolwood's neighbouring factory, Pressworks.

As well as its main manufacturing sites in Newton Aycliffe and Scotswood Road in Newcastle, VPTA will also operate from two sites in the West Midlands.

Advisors on the deal included Darlington-based chartered accountants Clive Owen & Co and solicitors Ward Hadaway, based in Newcastle.

Mr Marshall said: "This is a fantastic development for us and Vickers Pressings. The scope that it provides, both in terms of our skilled workforce and production capacity, means we will be able to better compete with some of the larger automotive suppliers. Together with our trading partner in Asia, Unistrong-Taiwan, we will be able to meet the challenge of the global marketplace.

"We anticipate this will create new jobs, but we can't put a number on it yet.

"What the objective will be is to create longevity of employment."