A manufacturer has taken over two mothballed companies in a move that is expected to increase its turnover and create jobs.

The Tanfield Group, based near Stanley, County Durham, has bought fire engine maker Saxon and Norquip, which supplies airport runway equipment, such as passenger stair units.

The deal, for £280,000, will strengthen Tanfield's presence in airport supply.

Roy Stanley, Tanfield chief executive, said: "This will mean more jobs in the long run. It also means we can offer our airport customers a bigger and better product range."

The group, which is based on the Tanfield Lea Industrial Estate, employs 400 staff.

It has enjoyed success in the airport sector since buying Smiths Electric Vehicles (SEV), of Gateshead, last October, for £3.2m.

The company was moved to Stanley and has since won contracts worth more than £5m for its aerial access ladder platforms, airport baggage vehicles and milk floats.

SEV will electrify Norquip's diesel-powered range, capitalising on the growing market for zero-emission vehicles on airport aprons. Tanfield has already fielded Norquip sales inquiries worth £1m.

The Johnston Group, which owned Saxon and Norquip, closed its Cheshire plant in January.

Mr Stanley said both companies were trading profitably before the closure.

Norquip had an annual turnover of more than £7m. Mr Stanley estimates that it will take two years to get back to that figure.

He said: "We have a learning curve to go through - to understand how to make the products - but we have all the necessary skills and capability."

The deal includes what Mr Stanley described as a "substantial" amount of stock, which is being transferred to the region.

Saxon was a successful fire engine maker until 2002, when it broke links with the Fire Service Procurement Association. It had an annual turnover of £10m.

Mr Stanley plans to operate Saxon's spare parts supply business and will review whether to re-enter fire engine manufacture in six months.

The group has also announced changes to its board.

Jon Pither, chairman since Tanfield's share flotation, is stepping down to become non-executive director.

Mr Stanley becomes chairman, temporarily combining this with his chief executive role.

Martin Groak also joins as a non-executive director