A TEES Valley engineering firm is set to break into global markets after buying a local foundry and investing a six figure sum in new equipment. Teescraft Engineering, based at South Church Enterprise Park Bishop Auckland, County Durham believes its tie-up with Stockton Casting Company will boost the prospects of both firms, which have a combined turnover of almost £9m.

The businesses are making a joint trade mission to China at the end of this month and bosses hope that their combined expertise will win bigger contracts and broaden their respective client bases in the upcoming years. Over the last two decades the Stockton foundry, set up in 1947, has become a trusted supplier to Teescraft, which makes hundreds of thousands of specialist parts every year for the automotive and oil and gas industries. Among its clients are Cummins Engines, JCB, Komatsu and Perkins Engines. It has recently started making plastic seals for the petrochemical industry.

Rob Yorke, managing director of Teescraft explained the reasons behind the deal. "It was attractive to us because of the obvious synergy that existed between the two parties, and that it gave us control of the supply chain," he said. "We now have a closer partnership which suits both businesses. It is allowing us to move into different fields and strike up relationships with new customers."

After completing a management buy-out for Teescraft in 2003, Mr Clarke has overseen a significant expansion of the business that has increased its workforce from three to 45.

He added: "We focus on rapid prototype and very quick turnaround. There is a strong emphasis here on research and development. You are not competing with Joe Bloggs down the road like you may have been 30 years ago. We operate in a global marketplace.

"Our business has weathered the storm of the downturn, but you must remain competitive. This year alone we will expect to spend more than £700,000 on new machinery. You have to keep up with cutting edge technology; employ a highly-skilled flexible workforce, and adapt to the market. Combine those elements and you can compete with anyone."

Despite its intention to bid for contracts overseas, Teescraft will continue to focus its efforts on niche markets.

"We might be asked to do 450 different part numbers for one customer - not many people can offer that kind of service. It is one of the benefits of being able to diversify and be flexible. You have to adapt and embrace the change."