ENGINEERING business Derwent is investing £350,000 to meet a growing demand from customers in the marine and offshore industries.

A £150,000 investment from independent fund managers Northern Enterprise has been instrumental in enabling the Tanfield Lea-based company to expand its business, creating new jobs.

The company has built a reputation for designing and manufacturing a wide range of hydraulic cylinders as well as for precision and general engineering.

Recent orders have included 800 cylinders for ten new ships being built in Japan and a customised telescopic cylinder, designed, built and shipped to New Zealand within a seven day deadline.

In addition, the company has been establishing itself in the oil tool industry, and has just won a £200,000 order.

The firm's managing director, Mike Brown, said: "This investment has been necessary in order to widen our machine capability.

"A new state-of-the-art CNC lathe means we can meet the increased demand for high volume orders whilst our existing machinery gives us the flexibility we need for larger and one-off jobs."

Mr Brown added: "We have already expanded our workforce from 20 to 25 and expect to create more jobs with this expansion.

"It is taking us to areas where we are confident there is a growing market for us and the investment is aimed at doubling our turnover."

Mike Hird, investment executive for Northern Enterprise, said: "Derwent Engineering is a growing company with a good management team and we have every confidence in its future.

"We are pleased that our investment is enabling the company to realise its expansion plans."