A DERELICT forge that has blighted a town for years has been bulldozed to make way for a £15m superstore.

Work has started on clearing the derelict buildings at Wilson's Forge, in Bishop Auckland.

Supermarket chain Asda says its proposed 45,000sq ft store on the site will create up to 200 jobs.

The store received planning approval in February, two years after the controversial project was made the subject of a two-week inquiry, amid concerns that it could be regarded as an out-of-town development.

Yesterday, Asda's property communications manager Simon Leonard said he was delighted that work had finally started.

He said: "We are still on course and, hopefully, the store will be open by the end of this year."

Mr Leonard also said that the company was still within its budget of £17.5m for the development.

Asda still has an outlet in the Newgate Centre, in Bishop Auckland, and is committed to a £2m deal to give the shopping centre a big facelift, bringing its total investment into the town to £17.5m.

It is hoped the refurbishment work will encourage retailers in the town to expand and will attract new businesses to Bishop Auckland.

Although Asda has already received outline planning permission, it is still waiting to hear from Wear Valley District Council about an application made in February to determine the final details of the development.

It is hoped a decision on the detailed planning application will be made in the next few weeks.

Wear Valley Hotel, which has been derelict since a fire in 1994, will also be demolished to make way for offices.

The development has been backed by Bishop Auckland MP Derek Foster and Wear Valley District Council leader Councillor Olive Brown.