A TEESSIDE company offering a unique service in MDF finishing is looking towards expansion in 2004.

The plans will create up to 25 jobs and allow the company to compete at local and national level.

MDF Powder Coatings, on the Bonlea trading estate in Thornaby, is the first company in the country equipped to powder-coat MDF products, following a £500,000 investment in powder plant technology, which included the installation of a fully-automated powder-coating facility with overhead conveyor.

MDF powder-coat wood products are now a viable alternative to wet spray finishing, laminating and membrane pressing. The key advantages include a single-coat finish with the look of paint and the functionality of laminate.

Higher processing speeds and the removal of solvent use mean a more economically and environmentally- friendly way to finish wood products.

The company was set up by father and son, Ed and Shaun Smith, in September 2002 after 12 months of careful planning. Their aim at the time was to target the construction industry, in particular with the revolutionary concept of powder-coating door mouldings.

It soon became clear that the company was not using its facilities fully and as a result it is expanding its markets to include shop fittings, furniture, shelving systems and signage.

Since setting up, the company has also diversified into the steel industry, which includes powder-coating parts for the automotive trade, palisade fencing and domestic and industrial appliances.

Since moving into new markets, MDF has struck up a mutually beneficial relationship with a neighbouring company on the Bonlea estate. Duoworld Shopfitting has begun to offer MDF's services to its clients and, as a result, the company has used the new finish on a number of projects, more recently on computer desks for offices.

Similarly, MDF has been able to recommend the joinery services of DSL to its clients.

Michael Pratt, business development manager at DSL, said: "Having a close relationship with MDF we are able to offer our contractors different kinds of high quality finishing, which is convenient and more efficient. The panel products we tend to work with ideally suit the MDF facility."

As a result of the increased business, MDF will transform 5,000sq ft of unused space into further stock storage.

It is expected that a further 25 full-time employees will operate a 24-hour shift system by mid-2004.

The company has benefited from Business Link support. Eric Whitehouse, account manager, offered help in the early days with preparing the business plan, with advice on market research. Most significantly, he was able to help MDF secure funding towards capital costs and the installation of the groundbreaking machinery.

"I was most impressed by the attention to detail and product quality shown by Ed and Shaun; they simply would not take an order on until the finish was spot-on," said Mr Whitehouse.

Business Link is an independent broker for business support in a range of areas . It can be contacted on 01642 806666.