A METAL fabrication company bought out of administration only two months ago has created ten jobs and is planning to break into new markets.

Evenwood Industries was rescued in a management buyout by directors Stewart Maudsley and Duncan McDonald in April, after its parent company Eliza Tinsley Group went into administration in January.

The administration followed more than 60 redundancies at the plant, in Evenwood, near West Auckland, County Durham, before Christmas, believed to have been caused by the loss of a major contract and a downturn in the industry.

The company manufactures a range of steel for the off-highway sector, with customers including JCB and Caterpillar. It is now planning to expand into the power sector and is targeting a number of key contracts.

Managers have been in talks with Teesside company Power Generation Technology (PGT), which has developed a device to reduce emissions and fuel consumption in power station turbines and is looking for a local supply chain to build components.

PGT is expected to sign a deal in the Middle East in a matter of weeks that could lead to more work for Evenwood.

Mr Maudsley told The Northern Echo: "Things have gone generally according to plan since the buyout.

"I think it is fair to say that business is steady, and performing in line with expectations.

"Our employee numbers are up - we have taken on about ten people.

"We are now exploring a number of new opportunities. The market we are in is a mature market and we are looking to grow outside our original market sector and search for new business opportunities.

"We are looking particularly in the power sector, with wind energy, and others, and also nuclear, with that potentially coming back on the scene as well."

The factory, originally known as Evenwood Engineering, was renamed Evenwood Industries after the management buyout.

The former Evenwood Engineering plant, which is more than 50 years old, was taken over by the Tinsley Group in 1996. It employs about 160 people.