PLANS to build one of the world's biggest medicines plants has been given a multi-million pound boost by the Government.

Biotechnology group Avecia, in Billingham, Teesside, plans to create 300 jobs over the next three years at a new £70m production plant, next to its existing facility in Billingham.

The plant, which will be one of the most advanced biologics medicines manufacturing facilities, is due for completion in 2005. It currently employs 150 workers.

Biologics are a new generation of medicines based on natural proteins. Drugs made at the new plant will tackle illnesses including diabetes, heart disease and cancer.

Alan Johnson, minister for employment and the regions, visited Avecia yesterday to announce a £6.5m Regional Selective Assistance (RSA) grant towards the £70m cost of the project.

Mr Johnson said: "This is fantastic news for Avecia, the regional economy and the UK biotechnology industry as a whole.

"The £6.5m RSA Grant will not only help create high-skill, high-value jobs but demonstrates the Government's commitment to leading edge manufacturing in the UK."

He added: "The UK is already the leading country for biotechnology research in Europe. This investment will encourage the further development of the biopharmaceutical sector both regionally and nationally."

Avecia chief executive Jeremy Scudamore said: "This is Avecia's largest single investment since its formation in mid-1999.

"It will firmly establish the company as a global leader in biologics contract manufacturing."

The group plans to look overseas as well as in the UK for suitably qualified people to fill the positions.

Avecia employs 3,500 people in Manchester, Billingham, Huddersfield, Grangemouth in Scotland, the US, mainland Europe and Asia.

Avecia's £70m investment in Teesside was welcomed by Tees Valley Development Company (TVDC) chairman, and leader of Stockton Borough Council, Councillor Bob Gibson.

He said: "This is a tremendous vote of confidence in the Tees Valley, and Avecia is creating exactly the kind of high-quality new jobs we need in the area.

"The Tees Valley is becoming an area with the ability to attract and keep world-class companies and to compete for investment in a global marketplace.

"The Tees Valley's long established position as an international centre for the chemicals industry is now being reinforced by our rapidly growing reputation in the bio-technology field."

Stockton North MP, Frank Cook was involved in intense lobbying activity to persuade the Government to support Avecia's new facility with grant aid.

He said: "I am delighted by the willingness of Government to throw its weight behind this project.

"This, together with the support of local agencies led by TVDC and Stockton council, means we now have 300 new jobs of the highest quality coming to the area, proving that we can attract world-class companies involved in the industries of the future."

* While on his visit to the region, Mr Johnson also opened a bottling line at the Federation Brewery, in Dunston, Gateshead. The plant received a £400,000 RSA grant towards the £3m investment.

The operation allows Federation to bottle 24,000 units an hour of High Level Brown Ale and Federation Special.