It is hoped 1,000 jobs will be created in South Shields
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More than 1,000 jobs are being promised with the creation of a new call centre on South Tyneside.
Teesside-based Garlands plans to open the complex, in the Market Dock area of South Shields, in February 2008.
The company already operates contact centres in Hartlepool, Stockton and Middlesbrough, for clients including Vodafone and Virgin Mobile.
The company received a £600,000 grant from regional development agency One NorthEast to help secure the deal.
Chey Garland, chief executive of Garlands Call Centres, said: "We very carefully considered a number of locations and opted for South Shields because of the quality of the local workforce."
'Exciting time'
South Tyneside Council leader Paul Waggott said: "This is tremendous news and represents a great vote of confidence in South Tyneside.
"We are confident that this is only the beginning and we will attract many thousands of jobs in the coming years with new companies or established businesses expanding in the borough."
Margaret Fay, chairwoman of One NorthEast, which owned the land where the call centre will be built, said: "The announcement of the new contact centre comes at an exciting time for South Tyneside with the recent launch of the large-scale regeneration programme along the Riverside."
Latest figures from One NorthEast show the call centre industry in the region employs more than 53,000 people - almost 5% of the working population.