'We could lead the world once again'.

Byline: Christopher Knox

Apounds 150m package of Government support for high-tech manufacturing could see the creation of hundreds of jobs in the North East as part of RollsRoyce's plans to build three new factories.

Up to 2,400 UK jobs are hoped to be created or safeguarded with the investment unveiled yesterday by Business Secretary Lord Peter Mandelson, which is aimed at helping manufacturers take advantage of new technologies, especially in the aerospace industry. Rolls-Royce, which employs around 600 workers in the North East, is to use pounds 45m of the money to fuel its pounds 300m investment plans in the UK, which will see it open three new factories as well as expand its plant in Barnoldswick, Lancashire.

It has not said where the new turbine blade and disc factory will be built but the company did confirm it was looking at Sunderland as a possible location.

The firm already makes discs at its Sunderland factory, where it has 400 staff, and at its base at the Michell Bearings facility at Scotswood Road, Newcastle, where it makes parts for the marine industry and employs around 200 workers.

Sunderland has been highlighted as a potential site for a new factory because of its status as an Assisted Area, which is eligible for extra Government funding because of its high unemployment.

Sir John Rose, Rolls-Royce chief executive, said: "These are significant investments in capability and research which reflect our commitment to continue to invest in the future of our business, even at this stage in the economic cycle. We are delighted that the British Government will be supporting these projects."

As well as the pounds 12m into the Printable Electronics Centre in Sedgefield the Government will invest pounds 40m in the Samulet Research and Development programme, which is to be delivered by the Technology Strategy Board, the non-departmental Government body that helps business develop new technology and the Engineering and Physical Sciences Research Council (EPSRC).

It will be delivered in partnership with Rolls-Royce as well as other high profile manufacturers and will begin a research and development programme into low carbon aircraft engine technology. Chief executive of the Technology Strategy Board, Iain Gray said: "Samulet aims to ensure the UK aero-engine industry remains competitive in the face of new 2020 emissions targets for aircraft and that it is in a position to manufacture engines for the next generation of civil aircraft.

"We supported this intervention be-causwe felt that it was essential that new technology advances rapidly enough in the industry to ensure that the UK retains a competitive advantage in this field."

The package also includes pounds 4m to support the work of the Manufacturing Advisory Service, which has a base in the North East, and works with manufacturers to help cut costs and increase efficiency, which can involve sending in experts to assess the viability of particular business models.

A number of the institutions waiting to benefit from the cash injection are now eager to receive more information about how and where the cash will be spent, with very little detail included in the announcement.

Regional manager of manufacturers group EEF, Tony Sarginson, said: "It's always good news when the Government invests in the right areas. EEF are big fans of Lord Mandelson as he seems to be aware of exactly what areas need the most support.

"It would be particularly good news if Rolls-Royce was to extend its operations in Sunderland, particularly at a time when the North East has suffered a series of set backs in both the manufacturing and petrochemical industries. However, we need more information about exactly how the investment will be used and split up across the country."

One North East Director of Business and Industry, Ian Williams, said: "We welcome this additional funding. It will help MAS North East continue to support small and medium enterprises

WHERE WILL THE CASH GO?

The pounds 150m Government investment announced yesterday includes: pounds 45m funding to Rolls-Royce to invest into four UK factories pounds 40m invested into research and development of low carbon engine technology pounds 12m to expand the Printable Electronics Centre in Sedgefield - to create 1,500 jobs pounds 5m to The Technology Strategy Board for research and development projects pounds 4m to expand the Manufacturing Advisory Service pounds 500,000 to develop the Centre if Excellence for Silicon Design in the South West.

CAPTION(S):

PACKAGE ANNOUNCED Business Secretary Lord Mandelson.