RECRUITMENT at excavator manufacturer Komatsu UK has hit its highest level since the plant opened 20 years ago.

The workforce at the factory in Birtley, near Chester-le-Street, has reached 701.

A further 20 people are expected to be taken on as the factory races to keep pace with production demand.

Chester-le-Street council leader Linda Ebbotson said: "I am very happy to see that more jobs are being made available. We want to see the long term future of a skilled workforce in this area.

"There is the concern when you look at figures for the North-East about retaining skilled people.

"We have the responsibility to ensure the people are equipped with the skills they need to develop their potential. This news is of benefit to us all and will have a knock-on effect for other businesses in the wider area."

Komatsu has a portfolio of 18 machines and exports more than 80 per cent of its products to Europe, North Africa and the US.

In the year ending March last year, it manufactured 3,140 excavators. This year it expects to produce 3,875.

Staffing levels stood at 549 last March and are predicted to reach 720 by this spring.

Human resources manager Tracey Wilson said: "In 2004, we witnessed a rapid period of growth to an extent we have not seen before.

"To make sure that we remain at the forefront of excavator design and manufacture, it is essential that we have a highly skilled workforce which is able to handle increasing production, while retaining the quality for which we have become renowned.

"We look forward to further growth and expect additional recruitment to be on the agenda throughout 2005."

Turnover is likewise expected to rise, from £200m to £245m.

In the past 12 months, the company recruited 30 permanent employees, 102 temporary employees, 15 Modern Apprentices, and made 49 temporary employees permanent.