SIX directors of Bowey Construction have completed a management buy-out of the company.

The deal completes a demerger from the Bowey Group, started two years ago.

The process began in May 2000, when the Bowey Group moved to the Team Valley, in Gateshead, after selling Bowey Developments.

Bowey Construction has gone from strength to strength, with order books standing at £25m.

Bowey Construction managing director Len Clark is keen to press ahead with growth plans. He said: "We have a very committed management team and workforce and it's all systems go.

"There's nothing holding us back. Our customers have shown a tremendous amount of support for this move and are backing us all the way."

He added: "In the last week alone, we have picked up a £5.5m education contract from the City of Newcastle, so we couldn't ask for more than that."

Chairman Peter Gregory said: "The deal has been struck without the need to use outside finance. The newly-created company will be owned and managed by the former management team and its trading name will remain unchanged.

"We will be stronger because we are now free to set our own objectives and manage our own corporate strategy."

Bowey was assisted in the transaction by Robert Muckle solicitors, and KMPG Corporate Finance.

Bowey employs a direct workforce of 200, including 16 apprentices and five undergraduate trainees.