ABOUT 100 jobs will be created when one of the world's biggest shipping groups moves part of its business to the region.

Danish shipping company Maersk is moving its ship management division from London's Canary Wharf to Newcastle Quayside.

Regional development agency One NorthEast has given the company £1.8m through the Selective Finance for Investment (SFI) to fund the move, which will see 40 staff move to the region.

Margaret Fay, chairman of One NorthEast, said the move has enormous potential for the region.

"It will bring highly-skilled and well-paid jobs and further strengthen our bid to be the number one business location of choice," she said.

"It is important to recognise the continued importance of the sector to the region's economy."

The team transferring from London to Newcastle is responsible for the crewing and technical management of more than 40 UK vessels operating around the world

The division, in Newcastle's Pandon Street, is expected to open later this year and Maersk plans to expand its operations over the next two years, to include a design team and a technology support unit, and create 100 jobs.

Rob McMullen, the North East Chamber of Commerce's policy and representation manager for Tyne and Wear, said the move could attract more business to the region.

"Businesses like to be in clusters, so this could lead to other firms moving to Newcastle," he said.

"It is excellent news - this approach of business leaving London to relocate in the North-East is something we want to see more off.

Alan Clarke, One NorthEast chief executive, said the deal was a major coup for the region.

"The majority of Maersk's UK operations are being relocated elsewhere in London, so for us to secure the shipping management division is fantastic news.

"This agency's aim is to make the North-East the location of choice for leading national and international firms, and this multi-million pound deal is yet another indicator that we are heading in the right direction to achieve this."

Mark Malone, managing director of the Maersk's shipping division, said: "Tyneside's history has been shaped by engineering, especially marine engineering.

"To date, it remains a centre of excellence, with a high concentration of marine engineering resources and experienced shipping professionals."