Egger has announced massive investment plans for its Hexham production site which would safeguard the future of 460 direct jobs.
The investment, believed to be worth around £100m, is aimed at turning the panels factory into the most advanced of its kind in Europe.
Outline plans include adding a further production line, new technology and improved design and landscaping to the site.
Production and technical manager Simon Dotlinger said: “Egger competes in a global market, and we have to justify why the company should undertake a major investment at Hexham, rather than at a site in eastern Europe.
“While infrastructure and labour costs would be substantially lower there, Hexham has a tremendous track record, and I am confident that with a more modern 21st century production facility we can be world class.”
The plans depend on the outcome of a company feasibility study and the availability of land next to the site. Full public consultation will be held during the planning process, which could be complete by the middle of 2005.
In the longer term, Egger hopes to see a cluster of self-supporting timber and forestry companies spring up to provide more employment and generate income for the Hexham area.
Hexham MP Peter Atkinson said: “This proposed redevelopment of the Egger site is excellent news – not just for the workforce but also for the hundreds of local businesses and individuals who supply the company and its employees with goods and services.”
