AEROSPACE engineering company Darchem has been bought in a £68m deal that could see further acquisitions in the UK.

The company, in Stillington, near Stockton, provides thermal components for clients including Airbus, Boeing, BAE Systems and Rolls-Royce.

It has been bought by the Esterline Corporation, of Washington, US, which last year had a turnover of £473m.

New York Stock Exchange-listed Esterline said the acquisition would add about £40m in sales each year and said Darchem's expertise in thermal design complemented Esterline's business in developing materials that operated at high temperatures.

Esterline wants to make further European acquisitions, through Darchem.

Robert Cremin, Esterline chief executive, said: "The addition of Darchem's product lines significantly expands the global reach for our already market-leading advanced materials capabilities.

"An important benefit of this acquisition is the experienced, capable and dedicated management team that will be joining us."

Darchem directors were unavailable for comment yesterday. They were believed to be explaining the deal to the workforce.

Darchem, which provides heat and fire protection systems for the aerospace, nuclear and petrochemical industries, employs 630 people at Stillington. It also has a site in Gloucester. The company was bought by Weir Group in 1993 for £16m, but was involved in a management buy-out in 2000 for £28m, funded by the Royal Bank of Scotland.

Last year, Darchem signed contracts worth more than £160m for work on the world's largest passenger aircraft.

It will provide high temperature insulation systems in the A380's wings, which include lightweight titanium exhausts and an advanced insulation system for the air ducts.

The double-decker superjumbo completed its maiden voyage in April and is expected to go into passenger service in the summer, and is continuing to place orders with component companies including Darchem.

Darchem started out manufacturing magnesia chemicals for insulation in 1927, and was known as the Chemical and Insulating Company.

During the 1980s, Darchem employed more than 3,000 people and had a big presence in Darlington, as well as at Stillington and at a site in West Yorkshire.