THE Prime Minister yesterday paid tribute to two business success stories in his own backyard.

Tony Blair was in Newton Aycliffe at the heart of his Sedgefield constituency, to officially open two high tech business ventures which will lead to the creation of hundreds of new jobs in the town.

The Ultronics Group began planning a County Durham operation, named Senstronics, just 18 months ago, after rejecting the former Fujitsu site, which they considered too big

Fortunately the Aycliffe Industrial Estate had exactly they were looking for less than a mile away, and the group will base its entire European production in the North-East.

The factory manufactures pressure sensors for the automative industry, and in one of the first arrangements of its kind to come on stream, Ultronics will pay back every penny of the £1.87m in public funds awarded to it, with interest.

The firm is currently involved in negotiations which it hopes will lead to orders being placed with the firm worth more than £130m.

Managing Director Steve Turner said: "We have received magnificent support and encouragement from the region when deciding where to locate our operation.

"There was an overwhelming energy that emanated from all quarters - The County Durham Development Company (CDDC), Durham County Council (DCC), Sedgefield Borough Council, and Government Office for the North East - to name but a few, all orchestrated to help us make the right decision - to come to County Durham."

Mr Blair was involved in a personal battle he knew nothing about with his own foreign secretary, Robin Cook, for the plant.

The firm considered locating to the Scottish town of Livingston, Mr Cook's constituency, but Mr Turner said the passion displayed by development organisations in the region tipped the balance.

"There wasn't much between them on paper," he added, "but the passion displayed by the CDDC and DCC in particular, left us in no doubt that Newton Aycliffe was the only place to come."

Mr Blair was given a conducted tour of the £10m facility and spoke of his delight at the new plant in his Sedgefield constituency.

He heard the story of how the company's development arm, based in Cheltenham, sought in vain for a high tech pressure sensor to include in its revolutionary hydraulic systems.

"We couldn't find anything to match the spec," said Alan Jinks, Senstronics Sales Director, "so we decided to make our own.

"Once we realised just how advanced it was, we realised that we should produce it for the rest of the World."

Interest in the prototype has exceeded all expectations with dozens of companies placing orders to date.

Analysts believe that the potential market for the product amounts to $9 bn a year - a sizeable chunk of which is expected to be secured by the Ultronics group.

Mr Blair then made a quick dash to the site rejected by Ultronics, the former Fujitsu plant.

There he heard of the success story that rose from the ashes of Fujitsu - Filtronic.

The company, which produces microprocessors for use in the telecommunications industry, is expected to create hundreds of jobs at the site over the next three years