More than 100 jobs are expected to be created after permission was granted for a £5million new industrial development on South Tyneside.
The three units will be built on the Monkton Business Park in Hebburn.
Washington-based Hellens Group, which is leading the project to create 55,000 square feet (5,110 square metres) of new industrial space, has received £1.27million from the North East Local Enterprise Partnership (LEP)’s Local Growth Fund and a further £1.7million loan from the North East Investment Fund, also administered by the LEP.
Hellens Group chief executive Gavin Cordwell-Smith said: "The development is fantastic news for South Tyneside and the wider region.
"These new units will offer growing businesses modern manufacturing space with 6-8m eaves height, and good power availability. We will work with prospective tenants to develop the internal layout of the units and offer cost-competitive rates on long term leases.
"We are tremendously appreciative of the support for the project that we’ve had from both South Tyneside Council and the North East LEP."
Work will start on site in September with a target completion date of September 2018. There will be one large unit of 30,000 square feet and two smaller units of 15,000 and 10,000 square feet, although there is the option for prospective businesses to combine the two smaller units into a 35,000 square foot facility.
The units will come with their own service yards and parking facilities.
South Tyneside Council Leader Coun Iain Malcolm, said: "This is excellent news for South Tyneside, with regional funds from the LEP being used in a targeted way to grow the borough’s business prospects.
"I’m delighted that funding from LEP’s North East Investment Fund and the Local Growth Fund will enable construction of these much-needed units to get underway this year."
The £270.4m Local Growth Fund, secured as part of the North East Growth Deal, supports the North East LEP’s delivery of the Strategic Economic Plan, which aims to create 100,000 more and better jobs by 2024. The North East Investment Fund was established as an evergreen loan fund to support capital projects that will lead to job creation.
David Land, chairman of the North East LEP’s Investment Panel, said: "Businesses in our region, particularly growing SMEs, are looking for new, state of-the-art facilities.
"Hellens Group has a strong track record in delivering projects and this scheme ticks many of the boxes in the LEP’s priorities and objectives, including supporting enterprise and private sector business growth; and strengthening transport, connectivity and infrastructure in the region.
"By investing and developing in new infrastructure we can help create more and better jobs for the North East."
Once built, the three units will be retained by Hellens Group and available to let.