A £5M east Durham factory opened yesterday, bringing 40 jobs to an unemployment blackspot.

One of the UK's leading timber frame manufacturers and suppliers, Roberston Timberkit, has set up a base in Seaham, marking the firm's expansion of its operations south of the border.

The facility will enable the company to quadruple its existing manufacturing output, boosting turnover to an estimated £40m by the end of 2005. The National House Building Council's (NHBC) chief executive, Imtiaz Farookhi, opened the factory.

He said: "Currently, NHBC's Buildmark cover protects 1.6 million homes in the UK, and each year our team of over 300 inspectors carries out 750,000 individual inspections on new homes.

"It is the scale of our operation, the fact that we cover all kinds of construction and the fact that we are the technical authority upon which house builders rely that we are so keenly aware of the developments such as this within the industry.

"It is quite clear to me that this initiative reflects a confident company that is proud of its product and fully aware of its potential for the future.''

He said that it was also clear that the investment marked a vote of confidence not just in the company, but in the future of house building in the UK.

Bill Robertson, chief executive of the Robertson Group, said: "There was no difficulty in choosing Seaham as a base for expansion.

"The local area provided the right skills base and we have had considerable assistance from (regional developement agency) One NorthEast, Easington District Council and County Durham Development Company to deliver this major new manufacturing facility.''