AN engineering company that was last year acquired by global group Siemens has secured a number of contracts and is planning to expand into new markets.

VAI, in Stockton, became part of Siemens' Industrial Services and Solutions (I&S) division when its parent company, VA Technologie, was acquired by the group for £688m in July.

Siemens VAI, which also has offices in Sheffield and Christchurch, Dorset, is one of the world's leading plant-building companies for the iron and steel industry.

In the past six months, it has secured two major contracts in India, an area in which the company is planning to expand further.

Its Stockton office has signed a £19m contract with Jindal South West Steel to supply a blast furnace and modernise the existing furnace at its iron and steel works in Toranagallu, India.

VAI's Sheffield office also won a £45m deal in December to supply Jindal Steel and Power with a plate-mill line for its steel plant in Angul, India.

Public relations manager June Hurst said there was a lot of potential for growth in India.

She said: "There has recently been a lot of growth in China and we are now expecting to see the same in India and Russia.

"In India, there are many opportunities for upgrading their steelworks and Siemens VAI intends to be there."

VAI has also seen growth in Brazil, where it is completing an £80m contract to supply a blast furnace for CST.

In the UK, one of its biggest customers is Corus, with which it recently signed a £5m deal to supply a blast furnace gas cleaning plant in Scunthorpe.

Steve Pallant, general manager of sales at VAI, said joining forces with Siemens would strengthen the company. He said: "Siemens would not have made a 1bn euro investment for nothing - it will help in terms of winning work. Siemens has offices in parts of the world we haven't - it has been very positive for us."

VAI has been in Stockton since 1860 and has outgrown its offices in Fudan Way, where it employs 120 staff.

"We are looking for somewhere else to move to in the Stockton area. We have a long history here and there is a lot of skilled engineers in the North-East," said Mr Pallant.

In the UK, Siemens employs more than 21,000, including in Newcastle, Durham and Harrogate, North Yorkshire. Turnover in the UK last year was more than £3bn, while group turnover was £52bn.