Bridgend, Merthyr Tydfil and Rhondda Cynon Taf councils agreed the contract with Capita Symonds to form a new venture called Capita Glamorgan Consultancy.

The scheme takes over from the Glamorgan Engineering Consultancy, with its 70 workers transferring to the new body today.

Capita Glamorgan Consultancy director Ian Germain said: "The new company not only protects our long- term future but also presents us with an exciting opportunity for development and growth.

"This area of Wales has a long and proud history of being at the forefront of industries such as engineering and our unrivalled technical expertise will enable us to expand the business while also creating significant job opportunities for the local community."

RCT council’s Cabinet member for economic development and housing, Councillor Paul Cannon, said: "We are looking forward to working with the new joint venture, continuing and progressing further still the excellent collaborative arrangements of the GEC.

"The introduction of a private sector partner will significantly enhance existing arrangements by providing additional flexibility and a much larger resource base."