A BANKNOTE maker has strengthened African ties to cash in on market demand.

De La Rue has formed a joint venture with the Kenyan government.

Bosses say the deal will be a crucial lever in prising open growth sectors.

The announcement comes just weeks after De La Rue, which runs plants employing nearly 600 people at Gateshead, revealed Kenya would join its North-East operation as a centre of excellence for cash manufacturing.

It also comes after The Northern Echo exclusively reported De La Rue, which operates the world’s largest commercial banknote factory in the region, would recruit around 80 workers to build on strong financial results.

According to officials, its Kenyan odyssey will add to an existing relationship with the country’s government.

Based in Nairobi, they said it will supply domestic and export markets, with Kenya’s government taking a 40 per cent interest.

The deal is expected to be finalised by the end of the year, with De La Rue continuing to operate and manage the business.

Martin Sutherland, De La Rue chief executive, said: “We are delighted to extend our longstanding relationship with the government of Kenya.

“This joint venture fits with our strategy of expanding into key growth markets and will secure our position as a supply hub of currency and security solutions for the largest economy in East Africa and the region.”

Earlier this year, Mr Sutherland told The Northern Echo De La Rue was ready to take on 80 workers at Team Valley after revenues and profits increased in the year to March 26.

The plans came as a marked a shift for the business, which, nearly a year ago, was forced to make 85 redundancies to protect it from falling profits and fierce European competition.

However, Mr Sutherland said pre-tax profits of £58.5m and order book of £365m, gave officials confidence to sanction a £15m expansion to improve its Gateshead and Kenyan cash-making sites and a sister Sri Lankan base.

He said: “We are one year into a five-year programme and we need to continue doing some of the things we’ve started.

“We are making a lot of investment across the business.

“We are putting in more manufacturing equipment and are now recruiting again in Gateshead to bring numbers back up to where there were.

“We lost about 85 (but) our plan is to recruit a similar number back this year.

“There is more to do, but I’m pleased with the progress made and confident the right foundations are in place to develop a more balanced business and increase profits.”

Late last year, De La Rue revealed it was cutting global production as demand for paper notes fell, saying capacity would drop from eight billion notes a year to six billion, with jobs affected in Malta.

It also revealed work from its Team Valley passport-printing plant would transfer to the Mediterranean country, though bosses said UK passports will still be processed in the North-East.

De La Rue, which has a sister plant in Essex, designs and makes more than 150 different currencies, including money for Fiji and the Maldives.