A £3.5m investment in a steel fabrication factory in North Yorkshire will lead to the creation of up to 40 jobs by January, it was announced yesterday.

Allerton Engineering, in Northallerton, said the factory and office complex would allow it to triple production.

The premises, in Thurston Road, is expected to boost the economic potential of the area as the jobs it will create are for skilled tradesman and a number of apprentices.

The move will increase the workforce by 40 per cent, from 60 to 100, by January.

Allerton Engineering has been established for more than 20 years and offers structural engineering, bridge design and building services.

The company works on bridges, cranes, plate girders, offshore structures and heavy fabrications.

Lawrie Ellis, chairman of Allerton Engineering, said: "The new factory means a new start for the company. We can increase production, employ more people and still have growth capacity for the future."

Gary Macnair, new business director for Bank of Scotland Corporate, in Leeds, which provided funding for the expansion, said: "Deciding when to relocate is a common problem for growing businesses, but it is one that has been nicely side-stepped by the team at Allerton Engineering by building a purpose-built factory.

"The new factory offers the company the chance to consolidate its growth but also has extra capacity should the need arise."