A £50 million factory-building programme could eventually create up to 4,500 jobs in Wales, including the Gwent valleys.

The Welsh Industrial Partnership, involving the Welsh Development Agency (WDA) and the Royal Bank of Scotland, will result in the construction of 70,000 sq m (750,000 sq ft) of new manufacturing floor space over a five-year period.

The speculatively-built factories, ranging in size from 1,000 sq m to 5,000 sq m, will be developed in Objective 1 areas of Wales - which covers west Wales and the Valleys - to complement and bring added value to Objective 1 projects.

The completed properties, which will be owned by the partnership, will have a commercial market value of £50m and sold as investments after the five-year period.

DJ Finance negotiated terms between the RBS and the WDA, and will act as investment advisers with Drivers Jonas as asset manager and project monitor. The agency will manage the actual development programme through its regional office.

Objective 1 is making good progress was the message that seminar delegates heard recently from the chairwoman of the body responsible for overseeing Objective 1 in Wales, Christine Chapman.

Speaking at an Institute of Politics conference, she said Objective 1 had made an excellent start in providing much-needed investment to communities in west Wales and the Valleys with some £300m already committed to almost 500 projects.

"This excellent start compares favourably with the Objective 1 programmes operating elsewhere in the United Kingdom and with match funding it represents an investment of £700m in some of the poorest parts of Wales," she said.

"Objective 1 has a vital role to play in turning Wales into a dynamic and thriving economy. "We must work hard to ensure that the £400m a year that is available in each of the next few years is used wisely to create the right conditions for the Welsh economy to flourish after the end of the programme.

"I am confident that the solid foundations we have in place will ensure that Objective 1 plays its part in turning the Welsh economy around. However, success will depend on a concerted team effort.

"The public, private and voluntary sectors must all play an active part in developing innovate projects that contribute to our long-term goal of transforming Wales into a dynamic and thriving economy."

* Pictured: Already £300m has been earmarked for regenerating the Valleys