AN engineering firm yesterday hinted at major contracts in the pipeline as it unveiled plans to relocate offices.

Aker Kvaerner Engineering Services Ltd is moving its headquarters from Richardson Road, in Stockton, to Surtees Business Park.

The offices will accommodate Aker Kvaerner's 440 staff, and there are plans for more jobs in the future.

The group has signed a lease agreement with Rokeby Developments Northern and expects to move into the building in December.

Aker Kvaerner said the move will enable it to increase its presence in the process, nuclear, water, energy and metals markets.

"As we gain more contracts, the amount of people (we employ) will grow," said a spokesman.

"There are two or three big contract wins in the pipeline, but I can't comment on them at the moment."

The move follows the sale of the Richardson Road offices, in December, to Miller Homes Ltd, who plan to build 220 houses.

Dave Ley, president and managing director of Aker Kvaerner Engineering Services, said: "This significant new investment in modern, purpose-built premises underlines Aker Kvaerner's intent to remain in the area in the long term, and will deliver an improved working environment for all."

The offices have been designed by chartered architects Lister Associates, on behalf of Rokeby. Aker Kvaerner secured a £1.4m Selective Finance for Investment grant, from development agency One NorthEast (One), to part pay for the move.

David Allison, One's director of business and industry, said: "I am delighted that an employer of the stature of Aker Kvaerner is reaffirming its commitment to Stockton and its workforce with this relocation to new premises in the town."

Aker Kvaerner is a global provider of engineering and construction services, technology products and integrated solutions, working within several industries.

Its engineering services arm works in the nuclear, water, metals, energy and process industries.