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Express Engineering, in Gateshead, looks to expand with capital injection
A 40-YEAR-OLD precision engineering firm, which saved more than 70 jobs after buying an engine casing maker, has secured fresh investment to target worldwide expansion.
Express Engineering, based in Team Valley, Gateshead, says it will strengthen its position in oil and gas markets after agreeing a deal with private equity investor LDC.
Earlier this year, Express, which employs about 375 workers, saved 76 jobs after acquiring Burdon Limited, in Stokesley, North Yorkshire, which had fallen into administration.
The firm specialised in engine casings for the aerospace industry and made axles for landing gear.
Express, which also has a plant in Sao Paulo, Brazil, and turned over £30m for the year ended March 2013, said the deal will compliment its existing work across the aerospace, subsea, and oil and gas industries.
Nigel Davison, Express managing director, said: “We have grown rapidly to become one of the leading players in the precision engineering market.
“This investment, alongside LDC's operational support, will strengthen our ability to service a flourishing domestic oil and gas sector, further develop our manufacturing operations in Brazil, and explore other foreign markets for growth.”
Chris Thompson, Express founder and chairman, said the investment would provide a platform to expand across the world.
He said: “In the past five years, we have invested significantly in our premises, our equipment, and our people, which has put us in an excellent position to take advantage of improving markets.
“We are pleased to have secured the support of an investment partner, which will allow us to further expand in the North-East and win new business around the world.”
LCD is part of Lloyds Banking Group, and backs management teams looking for up to £100m equity for management buy-outs or development capital transactions.
John Garner, LDC director and head of its Yorkshire and the North-East division, said: “Our investment will allow Express to broaden further.
“The company has done an exceptional job of growing the business.
“The outlook for the oil and gas market is compelling and there are very few businesses in the sector with Express’ quality of service and capability.”
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