ELECTRONICS firm Filtronic has sought to allay fears over the signing of two crucial agreements which will secure hundreds of jobs.

The company announced in the summer initial heads of agreement with American based M/A-Com and BAe Systems Avionics aimed at boosting capacity at Newton Aycliffe, County Durham.

Filtronic's executive chairman, Professor David Rhodes, predicted then that the deals would be signed within the "next several months".

But despite progress being made, delays with the BAe agreement are still holding things up.

John Samuel, Filtronic's finance director, said: "We still don't know when the agreements will be finally signed, but I really believe it will be within the next few weeks.

"There is absolutely no doubt at all that the deals will be done and the agreements have not changed in any significant respect.

"It will, though, be a relief to conclude this as it has been a long exercise involving complex negotiations on lots of products and technical processes."

Mr Samuel said the deal with M/A-Com, which makes mobile phone handsets for customers including Nokia, was ready to be signed.

Staff from the American firm had visited the Aycliffe microchip plant this week to discuss a development programme. But the BAe agreement involving the manufacture of defence applications was still not ready.

"The latest version of the agreement was sent back to the BAe legal department this week and we are awaiting their response," said Mr Samuel.

The final agreements could create 30 new jobs at Newton Aycliffe - the facility taken over by Filtronic from Fujitsu.

About 100 staff are employed at the plant, which appeared to be under threat when Filtronic announced it was seeking a financial "white knight" to share costs.

The West Yorkshire company admitted that uncertainties in the global economy were creating a "difficult environment".

The telecoms industry, one of Filtronic's major markets, has been particularly badly hit by the downturn.

However, Filtronic remains confident it is on course for an improved performance in the second half of the financial year, after "satisfactory" figures in the first quarter.