A FAMILY-OWNED chemical firm has topped off a good year by expanding its operations in China.

Thomas Swan, based in Consett, County Durham, has been granted a Hazardous Goods Licence by authorities in the country for its recently established Chinese company, Thomas Swan (Shanghai) Co.

It means it can trade directly in China, importing and exporting, handling and storing a broad portfolio of chemicals.

This will allow it to cut shipping times to customers in the country from about three months to a week.

After a difficult start last year, which saw the Rotary Way-based company make 22 redundancies, a boost in business since last April, allowed it to take a number of those staff back on.

The firm, which exports 86 per cent of its products and has benefited from the weak pound, now has a staff of 122.

Managing director Harry Swan, great-grandson of Thomas Swan who founded the firm in 1926, said: “Like everyone, the beginning of 2009 was a bit grim, but since April we have had an extremely good year.

“We have been profitable for the first three quarters and expect the fourth quarter to be the same and we are forecasting this year’s turnover to be about £20m. Although we are based in the North-East, we are benefiting from the current exchange rate.”

China accounts for only six per cent of the company’s sales, but Mr Swan expects that to increase.

It has had an office in China since 2007 but, until it obtained its licence, the company could only contract third party Chinese firms to trade on its behalf.

Now it can trade directly.

The company has appointed James Zhao, as managing director of its Shanghai-based division. Mr Zhao said: “This is an important step in the expansion of Thomas Swan’s business into China.

Thomas Swan manufactures more than 100 products.