A South Tyneside manufacturer plans to double the size of its operation after a successful first year of trading in China.

Bede Technology, of Jarrow, which makes thermostat production and test equipment, has completed more than £500,000 worth of business since moving into the Chinese market a year ago.

It was recently rewarded with the China Exporter of the Year award.

Now, with the help of a £250,000 investment from Northern Enterprise Ltd (NEL), Bede is moving into a new 18,000sq ft factory at Doxford Park, Sunderland.

Managing director Philip Mulholland said: "We desperately need more space and are nearly trebling the size of our current premises in Jarrow with this move.

"We plan to move by April and expect to double our workforce of 20 in the first year, and double our £1.5m turnover in the near future."

The company assembles and tests thermostats for use in a wide range of products, including microwaves, washing machines and cars.

It also produces industrial computers for the medical, military and general industrial markets.

Mr Mulholland said: "We were doing well in the UK and the US, but last year we joined a trade mission to China after noticing that a large number of Chinese companies were represented at a household appliance exhibition.

"The Chinese currently use hand presses for thermostat production, so we are able to offer them a semi-automated process that guarantees a much higher quality and volume, but retains the flexibility they need."

He added: "We have been working with about six major companies, but the potential market is ten times that number.

"China is a difficult market to get into, but once you have built up a relationship, the companies are very loyal and committed."

Bede now has an office in China and makes regular visits from the UK.

NEL has helped Bede by helping the company to source backing from banks and the DTI.

David Whitnell, NEL portfolio director, said: "Bede Technology has already achieved significant success and we are delighted that our investment will help them with this major expansion."