THE beleaguered Teesside economy received a much needed boost yesterday with the creation of 170 new jobs.

Industry Minister Alan Johnson was delighted to announce the news of the new posts at Middlesbrough-based Appleyards Plastics Ltd (APL).

The firm is branching out into the telecommunications industry with the help of a £500,000 grant from the DTI.

The company has invested £3m over the last three years developing a high tech robotic production line to spray and decorate mobile phone handsets.

The recruitment will boost the numbers employed at the firm's two sites in Middlesbrough and Thornaby to 270.

The expansion into the telecommunications market has already attracted interest in its products and processes from major blue chip companies such as Motorola and Nokia.

Mr Johnson said: "The 172 good quality jobs associated with the expansion will provide a major boost to the area with much of the workforce being drawn from Teesside.

"It sends a clear message to other companies looking to invest in the area, that it has much to offer.

"It is also confirmation that the Government is creating stable economic conditions that business needs to invest in the future."

Jobs created include production operators , supervisors and management at two new robotic spray booths at the Middlesbrough plant.

APL specialises in the automated paint application and assembly of plastic components for the automotive, teletronic and telecommunications industries.

APL MD Sarit Sharma said: "Our investment in technology and the advancement of our workforce is the key to our business success, especially when competing against the influx of East Asian competition.

Finance director Tim Sharma said: "It remains essential that regional companies are provided with flexible and attainable sources of finance which recognises growth patterns and development phases.,

"The assistance from the Government is appreciated and underlines the on-going investment into Teesside."