THE extension of a factory could create 40 posts in an area that has been been hit by job losses.

Metallink Fluid Power Systems, of Crook, has applied for planning permission to extend Prospect Road factory.

The company wants to build an office and canteen, and provide extra parking facilities in a move that could triple the size of the factory.

The proposals come a year after the town suffered the loss of 87 jobs when J Barbour and Sons announced it was going to close down its Crook factory.

Members of Wear Valley District Council's development control committee are to discuss the plans on Thursday.

Council planning officers have recommended approval, despite concerns by neighbouring residents, who have sent seven letters of objection about the size of the development and noise pollution fears.

They say that the proposals would reduce privacy and devalue properties. Concerns were also expressed about landscaping and whether the construction could cause structural damage to homes.

But planning officers said the scheme would have no detrimental impact on nearby residential properties in terms of noise, and that Metallink had agreed to incorporate an area of landscaping on the site nearest to homes.

Metallink is owned by Italian company Gruppo Borghi and manufactures rigid manipulated pipeline components for use in hydraulic equipment and machinery. It supplies a number of blue chip companies with equipment.

The company moved to Crook in 1997, when it employed 30 people. Its workforce now stands at 90 people.

Council planning officer Jeremy Good said in a report on the proposals that ideally the company was happy to stay in Crook.

He said: "Metallink is currently operating at full capacity and has been doing so for some time.

"This lack of capacity has been constraining the growth of the company and, consequently, it has been evaluating its options for expansion.

"The company's preferred option is to remain and expand in Crook. However, the parent company has also considered alternative UK locations.''