A SUBSEA company says it will create jobs and strengthen production after announcing a £1.5m finance deal.

Ennsub is being supported by The Scottish Loan Fund.

The cash investment comes as the firm seeks to build on lucrative contracts to supply the specialist offshore industry.

The company, based at Wynyard Business Park, near Stockton, designs and makes systems to deploy underwater remotely-operated vehicles (ROVs), which are used in pipe-laying vessels.

It says the money will supplement increased design work, expand its workforce and lift production capacity.

Scott Macknocher, Ennsub managing director, said: “This allows us to capitalise on the foundations we have laid over the past two years, particularly in terms of developing industry-leading technology, which meets customers’ needs.

“We are confident the subsea industry is moving into a phase where innovation and efficiency are key drivers, and such an environment is one in which we can thrive.”

Ennsub previously designed two systems to provide external and internal support for ballasting on an Australian liquefied natural gas platform’s corners.

It also previously worked with independent provider, Rovop, to send two ultra-deepwater ROV launch and recovery systems to the Ceona Amazon pipe laying vessel, and last year revealed a £2m agreement to make launch and recovery systems for surveying company Benthic to carry out investigations in depths of 3,000 metres.

The offshore sector has suffered in recent months due to the falling oil price, and, speaking to The Northern Echo, Mr Macknocher admitted the situation could last for more than a year.

However, he said Ennsub, which has 12 workers in the region, is well equipped to deal with the challenges.

He said: “It could be 18 months before it starts to pick up again; it’s all about supply and demand.

“There is a perfect storm going on; you have the price, the fact oil is running out, the US shale gas revolution and the global economy.

“But as a company, we are still relatively embryonic and are nimble and flexible enough to come out of this stronger and in a better position than some businesses that have larger overheads.”