THE new owner of a Teesside manufacturer is aiming for growth, after restructuring the business.

Hill and Smith (H&S) has stopped crash barrier fabrication at Lionweld Kennedy, in Middlesbrough, shedding 18 staff from the workforce of 156.

H&S chief executive David Grove said: "We have to ensure we have a viable business that is robust and protects the jobs that are there.

"We have a much more modern barrier-making facility in the West Midlands. What little business was left at Lionweld - and it wasn't much - has been transferred there.

"The restructuring is at an end and we would now hope to take the business forward."

Further job losses were saved after H&S brought back steel parapet bridging fabrication to the site, an operation closed down under the previous owner.

Yesterday, the West Midlands group announced it was transferring its entire steel parapet fabrication business from Birmingham to Teesside, safeguarding the remaining 138 jobs.

Mr Grove said: "The previous owners had closed down its steel parapet business because it was loss-making.

"We are the market leader and think we can make it profitable. We are transferring all of our steel parapet manufacture to Middlesbrough."

He is hoping to introduce other lines to the seven-acre site.

"We are always looking for complementary products we can sell to the same customer," he said. "Teesside is an important part of our business."

The Middlesbrough site will continue to manufacture steel flooring under the Lionweld Kennedy brand.

"It is a well known and well respected brand in the market place," he said.

But Mr Grove warned it would face stiff competition this year from cheaper foreign imports.

"We will respond to that in our marketing and pricing policies," he said.

H&S is also carrying on with Lionweld's galvanising operation in Hartlepool.

Lionweld was the subject of a £7.5m management buyout in 2002, from Australian company Pacifica.

It went into administration last year, and H&S bought it in November for £2.6m, saving 160 jobs.

Hill & Smith last month reported record annual pre-tax profits of £8.4m, up from £6.2m in 2003.