ONE of the largest suppliers of car parts in the world is creating 250 jobs in the region with a multi-million pound investment in a factory.

The Lear Corporation yesterday announced it was opening the factory at Rainton Bridge business park, in Houghton-le-Spring, near Sunderland.

The city council said the move would strengthen Sunderland's reputation as a thriving area for automotive companies.

In a joint venture with Japanese company Tacle (UK), Lear signed a lease on the 12,000sq metre factory yesterday.

The US-based Lear Corporation, which has an annual turnover of more than $17bn, plans to invest millions in the former Lucas Sumitomo factory.

The company is one of the world's top component companies, supplying everything from seats to dashboards to automotive companies around the world.

Lear will supply nearby Nissan with seats, harness and air conditioning units.

Sunderland City Council met the company in 2001 and has been in talks for the past 18 months to set up the deal.

Welcoming the announcement, council leader Bob Symonds said: "It is a vote of confidence in the city's booming automotive sector and it brings the total number of new jobs announced for the city to 3,000 in the past three months."

Barclays recently announced plans to create more than 200 part-time jobs at its call centre in Doxford Park, and Northern Rock is moving its headquarters to Rainton Bridge, creating 2,000 jobs.

Margaret Fay, One NorthEast chairwoman, said: "One NorthEast has worked closely with Tacle (UK) and Sunderland City Council to help secure this very important new investment for the area, which brings the promise of valuable new automotive jobs to support Nissan's plant.

"This investment by Tacle (UK) is great news for the area and for the wider North-East economy and proves the North-East has the quality business space that today's employers demand."

Paul Buie, manager of Tyne and Wear Development Company, said: "Having been involved in the project since 2002, we are delighted that another high-quality business is investing in the region, creating excellent career opportunities for local people and providing a good mix of skilled jobs."

The factory is expected to open in March or April.

Sunderland's automotive sector employs 12,000 people, more than 4,500 of those at Nissan's Washington plant.