A FAMILY-RUN metal finishing company will create about 40 North-East jobs in a £5m expansion into the former home of the world's oldest conservatory maker.

Almit Group, based in Bishop Auckland, Shildon and Newton Aycliffe, County Durham, is moving into the Amdega factory, in Darlington.

Bosses say it will allow the company, which employs 77 people, to build on existing services, that include offshore gas pipe protective spraying.

The Amdega building closed in 2011 with the loss of about 200 posts after the internationally-renowned conservatory, orangery and summerhouse firm collapsed into administration.

Almit say the 170,000sq ft base will enable it to continue expanding into the architectural fabrication and oil and gas sectors, and build on its £5m annual turnover.

The company provides powder coating for new buildings, wet spray services to protect pipework on oil rigs, chrome and silver plating, and an anodised coating to protect aluminium from corrosion.

The deal will see Almit's Shildon-based Specialist Coatings division, the Industrial Anodising and Aliprint divisions, both in Bishop Auckland, and its Almit Metal Finishing, in Newton Aycliffe, all close, with operations shifted into the Darlington factory.

The move will be phased in during the next 12 months, with bosses hoping to transfer a number of workers into the ex-Amdega site by Christmas, and sell its existing plants.

Allan Mitchell, Almit group general manager and son of founders, Dr Allan and Irene Mitchell, who set up the business in 1981, said: “This is a massive leap for us and the kit we are bringing in could double production capacity.

“The building is very well-known and suits our needs, it is a big expansion and we are really going for it.

“We are continuing to expand and supply a range of protective and aesthetic metal coatings for architectural and engineering components across the North-East, but our diverse premises were starting to hold us back, so this is an exciting time for us.

“We work closely with customers to help them meet their own production schedules and win business, which benefits us both.”

The company's expansion is being supported by Yorkshire Bank’s North East Business and Private Banking Centre, in Stockton, which allowed Almit to access Let's Grow funding, part of the Government Regional Growth Fund.

Paul Wells, from Yorkshire Bank, said: “The Almit Group is a home-grown, North-East business set to expand and create jobs in the region, and we are proud to support its growth.”