A car parts manufacturer is expanding and creating more than 20 jobs with the help of a £240,000 grant from regional development agency One NorthEast.
The Regional Selective Assistance grant will also safeguard 79 jobs at VC UK LP, on the New York Industrial Estate, at Summerbridge, near Pateley Bridge, North Tyneside.
The company supplies vibration dampers to car makers such as BMW, Ford Group, Toyota, Nissan, DaimlerChrysler and Honda.
It is planning to develop a more advanced damping system which will open up new opportunities for skilled workers.
The One NorthEast grant ensured VC UK was able to overcome stiff competition from a sister company in the Czech Republic to secure the contract.
UK Director Clive Wade said: "We are part of a German company which has facilities in the Czech Republic.
"Wage levels there are significantly less than we pay in Britain but this grant gives us an advantage in terms of capital expenditure and productivity.
"That was the only way we could compete in terms of business and without that grant we would not have been successful in securing this new work."
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