MORE than 80 jobs have been secured and another 15 created after a vehicle parts manufacturer on the verge of closure ploughed more than £1.5m of investment into its factory.

Labone Castleside, in Consett, County Durham, has invested in new machinery that will allow it to expand the business and compete with Eastern Europe and the Far East.

The company, a manufacturer which had mainly produced smaller plastic parts for the motor industry, is a subsidiary of Derbyshire-based RA Labone & Co.

Competition in the smaller parts market had been intense from low-cost economies, but new 800-tonne capacity machinery will allow it to mould larger parts. It has already won contracts with Land Rover, Ford and Nissan for the larger parts.

Labone secured a grant of £240,000 from regional development agency One NorthEast to go towards the cost of its new machinery.

The cash has helped it invest in 11 large injection moulding units, and other machinery, without which the company could have faced possible closure and job losses.

With the help of the new contracts, the company has been able to train its staff and take on an extra 15 people.

Labone secured the grant with the help of Middlesbrough-based accountants Keith Robinson and Co. Partner Mr Robinson said: "Suppliers from the East are becoming a real problem for manufacturers, but by diversifying into a market where importing is less cost effective, companies in the region can continue to compete."

Labone managing director Nigel Riley said: "This funding ensures that we can not only continue our work in the North-East, but also increase the skills of our staff and bring in more people.

"Without the grant from One NorthEast and considerable investment from inside RA Labone, the chances are that this site would have closed because of the competition from Eastern Europe and the Far East.

"With the grant, the future is much more positive and considerably more secure."

Ian Williams, head of business, investment and finance at One NorthEast, said: "At a difficult time for the manufacturing industry, it is pleasing to know there are companies in the region which are investing in their future."