FILTRONIC revealed yesterday that recruitment at its County Durham site had begun in earnest, as the company released its annual results.

Although announcing a pre-tax loss of £3.9m, compared with profits of £12.5m in 1999, costs of around £10m were incurred for its takeover of the former Fujitsu site in Newton Aycliffe.

Professor David Rhodes, executive chairman, said: "The growth prospects of our new business areas, together with those of the more established businesses, give the board great confidence that Filtronic will provide its shareholders with outstanding and sustainable growth."

The new factory was acquired in September last year and Prime Minster, Tony Blair officially opened the site in the heart of his Sedgefield constituency hailing it "as the phoenix rising from the ashes of Fujitsu".

The area is still recovering from the bodyblow of losing almost 570 jobs when Fujitsu closed late in 1998.

But Filtronic plans to create 550 jobs over the next four to five years, and a spokesman for the County Durham site confirmed that recruitment had begun.

He said: "We have started recruiting for the sales and marketing department at Newton Aycliffe, and in the next two to three years we hope the site will become a major player in the specialised semi-conductor market."

Sales were up 18.7 per cent, and the company showed an operating profit of £18.3m, prior to the operating costs in establishing its semi-conductor manufacturing facility at Newton Aycliffe.

Professor Rhodes added: "The business completed a notable achievement in bringing the Newton Aycliffe facility into operational status on time and on budget.