The president and chief executive of Sevcon, the Gateshead-based manufacturer of electric vehicle components, has urged North East firms to exploit opportunities in China after signing a partnership to consolidate its position in the country's electric car market.
Matt Boyle said: "China has the biggest growth forecast for electric vehicles in the world, with an estimated 30 million cars expected for 2018.
"It isn't easy to exploit chances there if you're a small business, but there is help. I work with the North East Chamber of Commerce and UK Trade and Investment on different programmes they have."
The agreement with Risenbo Technology, a subsidiary of a Chinese Tier 1 automotive supplier, was designed by the company to accelerate Sevcon's growth in the country.
The deal, which was recently approved by Chinese government authorities, will see the business' operate as Sevcon New Energy Technology Company and will source all products from Sevcon for the Chinese automotive supply industry.
The joint venture – led by a Sevcon-nominated chairman - is set to become active within months, with each company holding a 50 per cent stake.
Boyle added: "We are a global business and the Far East is a growth sector for us. Europe is a mixed bag, but Germany is doing well. Southern Europe is not particularly buoyant, but it is growing and sales in the US are also doing well.
"Working with Risenbo will enable us to forge new customer relationships in this crucially important geographic market far more rapidly and efficiently than we could on our own."
The partnership comes after NASDAQ-listed Sevcon revealed revenues for the first quarter of its financial year had increased by 36 per cent.
Turnover climbed from $6.6m (£4m) to $9m (£5.5m) for the three months to 31 December 2013, with directors indicating the surge was down to improving economic conditions.
Profit before tax also increased to $710,000 (£435,000) compared to a loss of $1.2m (£730,000) for the corresponding period.
In December, Insider reported Sevcon had experienced an annual revenue slump of £2m for the year to 30 September 2013, despite a 10 per cent increase in final quarter sales.
Speaking at the time, Boyle said: "Looking forward, we believe there is far greater stability in our markets than at this point a year ago."
Sevcon was established in Team Valley more than 50 years ago and has retained its North East base despite having offices around the globe. It employs half of its 105-strong workforce at the plant on Kingsway South.