A regeneration scheme will aim to breathe new life into two industrial estates in Hartlepool.
The money will fund two grant pots to support firms on the Longhill and Sandgate industrial estates, and also pay for environmental improvement work to make the sites more attractive.
The town's New Deal for Communities regeneration programme will provide £729,000 between 2003-2004 and 2007-2008 as part of its Longhill Strategy.
About £200,000 will be provided by the European Programme and a number of private sector businesses are contributing towards the project's cost.
Anthony Steinberg, Hartlepool Borough Council's economic development manager, said: "The aim is to improve the whole area to create an environment that will give firms greater confidence. Hopefully, this will help to safeguard existing jobs and create employment opportunities.
"By improving the overall appearance of the estates it is also hoped other companies will view them as attractive locations to set up in business, creating even more jobs."
Money will be available to cover 50 per cent of the cost of security improvements to individual sites and premises.
Firms will also be able to apply for 60 per cent grants to fund works, including walls, fencing car parking and building improvements.
The general environmental improvement works will focus on key public areas with priority given to sites along the estates' main roads and entrances.
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