A PRECISION engineer is plotting further expansion after revealing a £100m nuclear contract.

Darchem has been named preferred bidder to make reactor tank liners for the Hinkley Point C development.

Bosses say the agreement, tipped to deliver at least £70m in sales, will create a number of North-East jobs and allow the company to strengthen its apprenticeship programme.

The deal comes just months after the business, based in Stillington, near Darlington, told The Northern Echo it was tendering for some of the largest jobs in its 60-year history.

It also follows a £50m contract to supply more than 1,000 stainless steel storage containers to the Sellafield plant, and confirmation of a partnership with Gateshead’s Studsvik to pool expertise on nuclear heating, ventilation and air-conditioning.

Hinkley Point C, in Somerset, will be the UK’s first nuclear power station in more than 20 years, with operator EDF Energy saying it will provide power for around six million homes.

Darchem’s deal comes after years of planning and development work to meet an anticipated surge in nuclear demand, which saw the company spend £8m on a 75,000sq ft factory to make equipment, such as giant waste boxes.

Billy Meijer, managing director at Darchem, which is part of the US-based Esterline Group and employs about 900 staff, confirmed the company was working with France’s Efinor in a joint venture after being chosen by the Bouygues TP/Laing O’Rourke partnership.

He said: “I’m delighted to see our long-term commitment to the UK nuclear industry has been recognised and we look forward to working with Efinor.

“The nuclear new build in the UK will provide even more opportunities and this selection will strengthen our ability to secure other significant contracts.”

Mr Meijer revealed the scale of the project will include making and installing reactor and fuel pool stainless steel liners, reactor water storage tank liners and liners for smaller tanks and sumps.

Speaking to The Northern Echo last year, he emphasised just how important the company’s new nuclear plant could be, adding it was imperative Darchem, known for making insulation blankets for Boeing 737 engines, didn’t rest on its laurels.

He said: “The factory has put us in a good position to aim for additional work and we are bidding for a lot; the pipeline is huge.

“Success breeds success; do a good job and people are always going to come back to you.

“Second best is not good enough in the industries we serve.”

Responding to the tender announcement, Fabrice Lepotier, Efinor chairman and owner, added: “This is the result of six years of successful collaboration with EDF and Bouygues and recognises the quality of the work produced by my team.

“I would like also to underline the importance of our partnership with Darchem in whom we have found complementary high standards and ideals.”

Darchem previously made liners for the Sizewell B nuclear power plant, based in Suffolk, while Efinor manufactured and installed a reactor water storage tank at France’s Flamanville nuclear installation, which is similar to Hinkley Point.

Darchem is also known for contracts to supply fire barriers to the Australian, Spanish and Indian navies.