AN aerospace engineering company has landed a £1.4m contract with Airbus that will create 30 jobs.

Aerospace Systems and Technologies 2000 Ltd (AS&T), of Consett, in County Durham, will manufacture a wing component for the Airbus.

The contract is part of AS&T's expansion plans which aim to increase business by 50 per cent next year.

It strengthens the North-East's leading role in the aerospace sector. AS&T employs 250 people at Consett, with a further 45 design staff in Manchester and another 12 in the US.

The company's ice protection division has been moved into a newly-acquired 22,000sq ft unit next to premises on the Number One Industrial Estate.

The move created space for Long Bed CNC equipment needed to make the new component and production operations have been restructured.

Owen McFarlane, chief executive officer, said: "Traditionally, the order for this component for the A380 Airbus would have gone overseas because the capability just was not available in the UK.

"We faced competition from companies in the USA, Italy and elsewhere that are ten times our size, but still won the contract and, hopefully, this will lead to a long-term commitment over the next ten to 15 years."

The project has taken 18 months to complete and AS&T has started making the first deliveries.

Airbus is its biggest customer, but the latest investment will further extend the Derwentside company's capabilities.

Mr McFarlane said: "The market is a highly competitive one, but we have the design capability and technical expertise here, with a highly skilled and immensely loyal workforce."

Every Airbus contains a part manufactured in the North-East.

The ice protection division operates at the leading edge of its sector, manufacturing systems for business jets, military and smaller aircraft.

DIDA, Derwentside's development agency, advised on the financial package for the project that included £240,000 of Regional Selective Assistance, and was also supported by Lloyds TSB.