A CAR parts maker has vowed to drive on with its expansion – but a mooted third factory has been paused, The Northern Echo can reveal.

Nifco UK says it will grow from its existing two plants in Eaglescliffe, near Stockton.

The business, which last year beat rivals from Germany, Japan and China to a Ford £50m contract, had previously scoured locations in the region for a potential new base.

However, Mike Matthews, Nifco’s Darlington-born boss, says it has now identified ways of bolstering operations from the Teesside sites that have given it such momentum.

Mr Matthews added the decision will have no impact on Nifco’s marketplace standing, revealing Ford bosses in the US have been impressed by its research and development prowess.

The Northern Echo also understands the business has been in talks with a supercar company over its equipment, while Mr Matthews says its Niclone product, designed to clean car emissions, is proving increasingly popular with manufacturers.

Mr Matthews said its research teams would be increasingly important in future years as car manufacturers seek an all-round package, rather than just parts suppliers.

He said: “Our products attract a lot of attention and a new oil pan for example, which is built to be stronger and lighter than any of its steel counterparts, is the first of its type in the world.

“We would also like to see Niclone in car literature soon, so when you buy a vehicle it says, ‘this is fitted with Niclone’.

“We were minded to expand; we were growing at quite a rate but sometimes you need to sit back and take a helicopter view.

“We thought about it and we can find a lot of space in these factories.

“We will expand one day.”

Mr Matthews, who is also president of the North East England Chamber of Commerce, added the business could create space for up to 25 new machines and hundreds of pallets by being cannier with its operations.

He said job numbers, which are into the several hundred, would remain steady, adding he wanted Nifco to use its stature and deep-rooted commitment to the North-East to help its valued supply chain.

He said: “It’s all about being the best we can be and doing that through our people.

“There will be job growth and investment but we will be a lot smarter too.

“We are only scratching the surface.”

Nifco’s £50m Ford deal, announced early last year, created around 50 jobs at its Eaglescliffe factories and sees the company make parts for new low-emission vehicle engines.

It helped the business record sales in excess of £62m in 2015, which was an increase of more than £6m on the previous year.