A FIRM which makes engine hoses for some of the most expensive cars in the world has rescued itself from the brink of closure by clinching a major international contract.

Ion AP secured a £300,000 deal to supply breather tubes to Nifco in a move that will save 80 jobs.

The County Durham firm, based in Annfield Plain, will see its products used in the assembly of units for international motor manufacturers.

The contract signals a remarkable turnaround by the company, formerly known as Eurosil, which went into receivership in March 2001.

Eurosil was making annual losses of about £1.3m at the time it was taken over by a group of investors led by businessmen Matthew Cooper and Graeme Lowdon.

Winning the contract with Nifco, of Stockton, means Ion AP is now breaking even.

Dr Paul Binnington, technical director, said: "This contract win is excellent news for us.

"Not only does it mean we are moving back into the black, but it shows we can compete against some serious international competition."

The company's shareholders voted at a recent annual meeting to change its name to Ion AP. Dr Binnington said: "We felt that a name change was necessary to drive home the fact that we have had a completely fresh start. The company is under new management, with a new strategy, new philosophy and a whole new way of doing things.

"It has been a hard slog over the past 18 months, but we are delighted with what we've achieved. The company has been turned around, jobs have been saved and the future is looking good."

Ion AP is negotiating for several other major contracts.

The company makes hoses for automotive and general industrial use and is exploiting niche markets in hoses for fuel tank delivery systems, turbocharger hoses and oil and vapour breather hoses.

Its products are used in high-performance, prestige cars such as Aston Martin and Lotus, and some 72 per cent of its products are exported.

With turbo-charged engines becoming more common, Ion AP has seen an increasing demand for its products, which are designed to operate at high temperatures.