ONE of the North-East's richest men is to build an orphanage in Romania after being touched by the plight of abandoned children.

Fitness clubs magnate Duncan Bannatyne has pledged about £100,000 towards the full cost of building the home in the Transylvania area of Romania.

The 53-year-old millionaire, who is chairman of Bannatyne Fitness, is working alongside charity, Scottish International Relief (SIR), on the project.

Construction of the orphanage, which will house ten children, has already started in the town of Targu Mures. The home will be called Bannatyne House.

In the past four years, the Darlington businessman has raised more than £300,000 for charities devoted to the plight of Romanian orphans.

In a visit to the country in 2002, he was shocked to discover children living in sewers and on waste tips.

Children, aged between eight and 12, live in appalling conditions in state-run hospitals. Some youngsters spend so long in cots on the wards they have yet to learn to walk as eight-years-old, he said.

He visited SIR's first home, Iona House, and was so touched by what he saw he decided to donate money to house more orphans.

Mr Bannatyne said: "The plight of these children has had a profound effect on me and anyone that saw how they live first hand would never forget it. I have committed myself to try to improve their lives to give them hope of some kind of future.

"I hope Bannatyne House offers a small number of Romanian children a chance of a better future.

"The conditions that children are born into are appalling.

"After years of communism the state services are not up to the task of providing any adequate help.

"I have visited Romania to find children living in sewers and on waste tips, which were shocking and distressing enough, but then I discovered the living conditions in the hospitals are just as horrific. Bannatyne House will offer a step towards some sort of normality to these children's lives."

The orphanage will cost £50,000 a year to operate and the businessman has already contributed to running costs.

The home will employ 14 full-time staff, all from Romania, including trained nurses, carers and a teacher.

It is expected to be open in May.