A CAR parts maker is creating jobs in a £5m six-year supply deal.

ElringKlinger (GB) will produce catalyst and exhaust heat shields for new Ford engines.

The agreement builds on a previously- announced £19.5m contract to supply Ford with complex gaskets and a £12m-a-year arrangement to make heat shield and gasket components for Jaguar Land Rover.

Bosses at the Redcar-based business, which employs more than 300 staff, say its new Ford contract will create up to 20 new posts, adding the firm has spent around £1.5m on equipment to prepare its plant for the work.

Managing director Ian Malcolm, who previously revealed a fiveyear plan to double the size of the company, said the deal was further proof of ElringKlinger’s market reputation, having worked with Ford for three decades.

He also said it would help the firm’s bottom line, with 2016 product sales of £21m expected to increase by half again this year thanks to its stellar contracts.

Mr Malcolm said: “We have worked with Ford for many years and have a strong working relationship with the team.

“This project is a great opportunity for the profile of both Elring- Klinger and the wider North-East, and will certainly see an exciting six years ahead once it comes into fruition in 2018.

“There has been significant investment in the plant to help us develop and manufacture components now in demand, while staying ahead of the competition.

“With new equipment comes the requirement for ongoing support and training for our workforce, which is at the heart of our operation to ensure we meet the high standards set and retain our reputation in the industry.”

Earlier this year, The Northern Echo reported how the business’ Jaguar Land Rover agreement, first announced back in 2015, would include parts destined for engine bay and vehicle assembly applications on six differing power units made at an engine plant in Wolverhampton.

The company has also spent £250,000 to bolster its Redcar tool room with new machinery.