AN engineering firm, which hopes to supply parts to a £70m North-East train building project, has expanded after buying another company.

Teescraft Engineering, based in South Church Enterprise Park, in Bishop Auckland, County Durham, has taken over neighbouring Steel Pro Services (SPS), which specialises in chemical-free paint stripping and jig cleaning.

The fabrication firm, which had three workers in 2003, now employs 74 people and supplies castings to Cummins, JCB, Gardner Denver and Perkins Engine Company.

Rob Yorke, Teescraft Group managing director, said its SPS investment would allow the company to build on its use of pyrolysis ovens, which safely strip paint and powder coatings while removing harmful gases from the process.

SPS has previously restored classic cars and motorcycles, and make rare components from drawings, and Mr Yorke said the move would allow Teescraft to work with a firm carrying out projects for Sunderland-based carmaker Nissan.

Mr Yorke said the deal comes as Teescraft, which makes hundreds of thousands of specialists parts every year for the automotive and oil and gas industries, hopes to win a contract to make parts for Hitachi.

The Japanese manufacturer will build the next generation of Britain's high speed trains in a new assembly plant in Newton Aycliffe from 2015.

Mr Yorke said: “When we sat down and looked at SPS' order book, we saw we had links to a lot of their customers.

“The ovens mean we can clean down jigs without exposing the harmful gases into the atmosphere.

“The people who had the business were looking to wind down and it is a perfect opportunity for us to take it on and move it forward.

“We are already looking to put in another £75,000 oven, which will increase work, and we hope it can be in by next month.”

The move comes after Teescraft bought local foundry, The Stockton Casting Company, in 2011, bringing its combined turnover to more than £9m, and Mr Yorke said the business was in good shape to move forward.

He said: “The deal with Stockton Casting was a really good buy and SPS has come at a great time because there is a lot of room for us to grow.

“We want to invest in the business and we we already have a good workforce to do that.”