A NORTH-EAST manufacturing company has won a major contract worth millions.

Kenmore UK, from Crook, County Durham, has beaten off stiff international competition to win the contract with Electrolux in northern Italy.

The company manufactures components for the refrigeration industry and anticipates that the contract may be worth up to £25m over the next four years.

The Norwegian-owned company has been established in County Durham for almost 30 years and employs more than 300 people.

It is part of a world-wide network with operations in Germany, Turkey, India, Italy, China and the US.

In addition to Electrolux, and Electrolux brands such as Zanussi and AEG, its client list includes Candy, Hotpoint, Bosch and Whirlpool.

Frank Bell, managing director of Kenmore UK, said: "The competition had the advantage of a weak euro but, despite that, Kenmore won the business.

"We were able to provide ongoing support to Electrolux and the flexibility and sheer hard work of our workforce here in Crook certainly made a major contribution.

"Kenmore has been willing to restructure in order to compete successfully in international markets and this contract will help us to secure jobs in our factory."

Carl Rawlings, investment development executive at County Durham Development Company (CDDC), said: "We congratulate Kenmore UK on securing this notable contract.

"Kenmore is a highly successful manufacturing company with excellent research and development facilities and a high percentage of export sales.

"It's a huge achievement to win a major contract to supply an Italian manufacturer in the face of keen Italian competition."

The news is a boost for the region's manufacturing sector following a number of recent bodyblows, including the loss of 950 jobs at Black & Decker in nearby Spennymoor.

Mr Rawlings said: "The company is delighted that the workforce has been so flexible and hard working to bring this contract about.

"It shows that the North-East can still compete. It's a highly competitive market, but this proves the North-East can do it."