KC ENGINEERING is investing more than £750,000 to meet a 50 per cent increase in business.

The company, based on the Delves Lane Industrial Estate in Consett, is currently installing state-of-the-art machinery.

It expects the investment will boost its current workforce of 42 beyond the 50 mark.

The Derwentside Industrial Development Agency (DIDA) helped the company put together its latest investment package which includes support from the NE Investment Fund, UK Steel Enterprise, and the DTI.

Set up in 1983 by Keith Chester, the metallurgical engineers and consultants are specialists in white metal bearings.

It deals mainly with the offshore, marine engineering and power generation industries and moved into its existing unit in 1996.

Alan Rigney, managing director, said: "Problems with a bearing can bring an oil refinery to a halt, so we have to provide our customers with a fast, flexible and efficient service.

"Every area of our activity is expanding as we have increased our customer base and seen a real growth in orders from existing customers."

He added: "We have been operating in Spain for some time but now we are moving into Italy and Holland as well.

"DIDA was instrumental in bringing the company to Derwentside and has continued to provide invaluable support and advice as we have expanded."

Steve Armstrong, DIDA's business adviser, said: "A major investment package that secures jobs for skilled engineers is excellent news for the district.

"It has been very gratifying to watch KC Engineering go from strength to strength in the years since the company moved to Derwentside."