QUORN owner Premier Foods said last night that strong sales would lead to a major investment and new jobs on Teesside.

Premier, which bought Quorn makers Marlow Foods last year for £172m, is looking to increase capacity across its Quorn production sites in Stokesley, in North Yorkshire, and Billingham, Teesside.

Premier said yesterday it had seen a double digit percentage rise in sales of Quorn for the six months to July 1.

It currently employs 374 people across the two sites in the region.

However, a spokesman said last night that, due to Quorn's strong performance, Premier was "reviewing its operations for increasing capacity".

He said there were no exact figures as yet, but it could mean a significant number of new jobs being created.

In a trading statement yesterday, Premier said cost pressures remained an issue but added sales growth across the group, which also makes Loyd Grossman sauces, had been in line with targets.

Chief executive Robert Schofield said: "The first half of 2006 has reflected the continued success of our strategy of growing all our branded sales, with Quorn, Branston, Loyd Grossman and Ambrosia all continuing to grow strongly."

Since its UK launch ten years ago, Quorn has become the UK's largest meat alternative brand, with annual retail sales of about £100m.

It initially targeted vegetarians, but has recently been boosted by the trend towards healthier eating and lower meat consumption.

Quorn is made from mycroprotein, a member of the fungi family, and acts as a direct substitute for meat, being high in protein, low in fat and high in fibre.

The raw material is grown by a fermentation process at the site in Billingham before being sent to Stokesley for processing.

Premier said it had increased Quorn advertising and launched new products following the acquisition.

As a result, Premier said first-half sales in its convenience foods, pickles, sauces and meat-free division were expected to be significantly ahead of the same period last year.

The company has also been encouraged by the performance of Branston Baked Beans, which it said had consolidated its market share at about ten per cent, as it takes on rival Heinz in a sector worth an estimated £250m a year.

In spreads, desserts and beverages, Premier said sales were strongly ahead of the £132m seen in the first half last year.