AN HISTORIC North-East foundry business is ending the year on a high note after seeing investments in its workforce, sites and equipment pay off with a growth in sales of 18 per cent to £15.4m over 12 months.

Foundry group Bonds also saw a 35 per cent rise in its overseas sales, bringing its total direct exports to 50 per cent of sales, although it is estimated that up to 90 per cent of castings produced by the group end up being sold abroad, as the firm makes components for equipment which is assembled by other UK firms and exported.

Growth has been achieved by the foundry group investing in its workforce by creating 50 permanent new manufacturing jobs, with employee figures rising 28 per cent to 225 across the group.

The company invested £4m in a new foundry, Bonds CastTech, which was built on the site of the former Kenmore factory in Crook, which had been empty since fridge manufacturer Parker Hannifin ended operations there in January 2009, leading to almost 180 job losses.

The new foundry occupies a ten-acre site, employing 30 people, and enables the firm to supply of a full weight range of steel castings from 0.25kg to 12 tonnes in all grades of steel from carbon to super duplex, complex austenitic alloys and nickel alloys.

The Crook site is set to expand as further industry accreditations are gained by the firm, which make castings for the oil and gas, marine and construction sectors.

A further £250,000 was invested in Bonds Precision Castings, in Alston, Cumbria, with the implementation of new furnace equipment and the introduction of an additional shift to meet customer demand for shorter lead times.

Over the next 12 months, the company is set to focus on maintaining quality to compete with cheaper competitors in India and China, and also creating specific and bespoke products to meet customers’ requirements.

The company's fortunes have been transformed since County Durham-born businessman Paul Duncan bought the 153-year-old foundry from administration in 2000.

Mr Duncan said: “2012 has been an exciting year for Bonds with increased sales and employment but our approach is to look to the long-term hence our high financial investment to expand the business here in the North East.

“With our investment in new facilities and continuing buoyancy in the international markets our expectation is for further growth in 2013.”