TWO months after it was rescued from the brink of administration, a North-East glass firm is expanding production and recruiting staff.

The jobs of 161 workers at Romag, in Leadgate, near Consett, County Durham, were saved when Wearside housing developer Gentoo bought the company in April.

The move ended a difficult period for Romag, which was in a precarious position following a cash crisis.

In January, the firm’s shares were suspended from trading on the Stock Exchange after it emerged that ex-chairman John Kennair had made a £3.97m payment to help balance the books without informing the board.

Romag was sold to Gentoo when a late bid to secure additional bank funding collapsed.

The addition of a new production line and 20 staff comes as Romag begins to rebuild its reputation as an industry leader. It is one of only two firms in the UK to assemble photovoltaic (PV) panels, and has long-standing expertise in the manufacture of bullet and blast-resistant glass.

Gentoo is expected to become a major client of Romag with plans to install solar panels on its housing stock.

Phil Murray, newly-appointed managing director of Romag, said: “With demand for solar PV on the up, we are investing in a third production line to expand capacity and benefit from the fantastic growth opportunities the renewable energy sector offers.”

Since the introduction of Feed-in Tariffs in April last year, which allow users to sell excess energy to the National Grid, firms have reported a dramatic increase in sales of solar panels to domestic and commercial customers.