wireless telecommunications specialist Filtronic has strengthened its position in the third generation (3G) mobile phone revolution by agreeing a major supply contract.

The wireless telecommunications specialist has been given the go-ahead for full production of its power amplifiers by an as yet unnamed partner.

The amplifiers carry large volumes of information across the 3G network.

Filtronic's technology is crucial to efforts by telecoms firms to extend the use of the next generation of mobile phones.

3G gives users access to greater quantities of information through their telephones. Network operators need a strong signal to be able to send that information, and Filtronic's technology enables them to boost output from base stations.

The contract success is expected to put the company's Newton Aycliffe manufacturing plant on the way to breaking even.

About £80m has been invested in the operation since Filtronic bought the site from Fujitsu.

But the company said its County Durham plant could be operating in the black within the next 18 months.

Filtronic announced an initial deal with the manufacturer in September to supply its amplifier.

A statement released last night said that Filtronic had now been made full strategic supply partner for what it described as production quantities.

Filtronic has yet to be told by the customer the exact quantities it will be expected to supply. Production is expected to start in earnest in the second half of this year.

The business declined to say who the contract was with, but an industry insider suggested it could be Siemens, which has been gradually expanding its 3G service in parts of mainland Europe.

Filtronic already supplies Nokia, Motorola and US-firm Lucent, which was formerly known as AT&T.

John Samuel, Filtronic finance director, said: "This is good news because the initial products supplied from Newton Aycliffe have been successful. This is a significant opportunity for us. There are lots of different parts of the jigsaw but I think the jigsaw is coming together.

"There are excellent growth opportunities arising from this, but it is not a given - we have a lot of hard work to do."

The company employs 350 staff at its Newton Aycliffe plant.