“OUR robots don’t replace people, they create jobs,” said a North-East manufacturing boss as he unveiled the latest stage of a £2m investment to boost production and output.

Peter Coates, managing director of DPE Group expects to create 12 jobs this year to support growth of DPE Automotive in Newton Aycliffe, County Durham. The investment in new welding robots is part of efforts to increase the firm’s capacity to meet strong demand for UK-made parts from some of the world’s leading vehicle manufacturers.

“The robots complement the workforce at DPE Automotive rather than replace the workforce, they allow us to increase our weld accuracy, repeatability and output, thus making us more competitive,” said Mr Coates, who led a management buy-out from parent company United

Steels Ltd in October, saving 100 jobs.

He added: “Being more competitive creates jobs and that is our ethos. We continue to expand and invest as we see our order book continually growing.

“United Steels left us with an excellent bedrock to build from and we are really appreciative of them giving us the opportunity to carry out the MBO last year as it has allowed us to create a growing company. My two fellow shareholders, who have invested significant personal funds, along with Rivers Capital and the North East Angel Fund are as delighted as I am with the progress we have made so far.

“We have also the continued support of both Barclays and ABN Amro banks to further support our growth needs. 2014 was a profitable year again for the company and the sales orders so far show continued growth and continued profitability throughout 2016 and beyond.

"We are working closely with Nissan Sunderland and Gestamp in Newton Aycliffe on numerous new projects, that will continue to create jobs and growth."

Mr Coates also expects to see a boost in business at DPE Automotive’s sister company, Durham Precision Engineering Limited, after it won

aerospace certification from industry accreditation body BSI, enabling the firm to increase its product and customer range.

Mr Coates’ buoyant move, and news this week that enginemaker Cummins Limited was shifting production from China to Darlington to speed up deliver times, come against a backdrop of an improving picture for the manufacturing industry.

The CBI's latest monthly Industrial Trends Survey showed the performance of Britain's manufacturers rose at their fastest pace for six months.

CBI economics director Rain Newton-Smith said: "Our manufacturers have more of a spring in their step this month, regaining some of the momentum lost towards the end of last year.

"Export orders picked up significantly, to a level not seen for six months, but uncertainty over prospects in the Eurozone will continue to weigh on export demand.

"So, it's imperative we continue to help manufacturers sell their products and services into high-growth markets around the globe."

She said that the drop in oil prices was good news for the sector as it brought lower operating costs, but added that North Sea producers were "clearly suffering."