THE Tanfield Group is planning to finance its expansion by placing £3m-worth of shares on the stock exchange.

The manufacturer of engineered metal and plastic components, based at Stanley, County Durham, has nearly doubled its workforce in the past year and is planning the placement of 50m shares.

Tanfield chief executive Roy Stanley said the money raised would be used to finance acquisitions.

He said: "We have always said that we want to grow through acquisition and this is part of that strategy."

The share placing is expected to be approved at a general meeting of shareholders early next month and Mr Stanley said a major announcement on acquisitions could follow soon afterwards.

Tanfield raised £4m on the stock exchange last month to help pay for the £3m purchase of Smith's Electric Vehicles, of Gateshead.