A STEEL fabrication company has expanded its base as it aims to increase turnover by a third in 18 months.

Allerton Engineering has invested £725,000 in a 14,000sq ft extension to its site in Northallerton, North Yorkshire.

The company, which was established more than 60 years ago and employs more than 100 people, aims to lift annual turnover from £7.3m to £10m by 2010.

Its extension was opened by William Hague, the MP for Richmond, who hailed the company’s performance.

Stuart Beales, the managing director of Allerton Engineering, said: “The business is growing all the time and we needed more fabrication space to keep pace with the increasing number of orders from our key clients.”

Mr Hague said: “It is great that Allerton is able to expand in this way. It shows that not everything in the world economy is contracting, and this business ought to have a very prosperous future. I am really pleased, as the local MP, to see this company doing so well.

“It also sends a positive message about manufacturing in the UK. Businesses like this show that if you have got your niche, if you know your market, keep ahead of the competition in terms of quality and make sure you have got the skilled workforce to produce what people really want, then you can make things in Britain.”