MORE than 120 jobs are to be created in a redundancy-hit corner of County Durham.

A healthcare development in Shildon is expected to reinvigorate the town in the wake of job losses caused by the closure of one of its major employers.

The town was rocked by the closure of the Masistar chipboard plant, at the George Reynolds Industrial Estate, in February last year.

A total of 129 workers lost their jobs when Masistar went into administration only two months after rescuing the plant from Vertex Panel Products, which went into receivership ten months after buying the former George Reynolds UK operation in February last year.

One of the North-East's largest independent providers of care for the elderly and people with learning and mental health difficulties is to open a £2.5m centre in the town which is expected to create more than 120 jobs.

The Shildon site, which covers an area of about 1.5 acres and is near to the town centre, will join the portfolio of properties operated by the Portland Group in Morpeth, Newcastle, Washington and Willington, near Durham City.

Portland, based in Willington, County Durham, is owned by Alison Morgan, who also unveiled expansion plans for next year.

She said: "We currently have 12 units, but that figure will increase dramatically over the coming year. Shildon is the first of several new homes planned for County Durham and Teesside.

"We are also delighted to be bringing some much-needed jobs to Shildon and are looking forward to becoming part of the community."

She said: "Over the past 18 years, I have developed over 25 care homes, either for my own company or for other individuals.

"However, I believe that we are now moving into a really exciting part of our development."

The Shildon care home, to be called Sans Pareil, after the engine built by railway pioneer Timothy Hackworth, who lived in Shildon, will offer day care facilities for up to 120 people on a weekday basis, and residential care for 53 people.

There will also be a respite unit for up to six residents, providing specialised care for people with more demanding requirements and to allow their carers to take a break.

All 120 staff are expected to be recruited locally.