Gateshead-based Responsive Engineering Group has announced it is investing £2 million over the next two years in new technology improvements to support and extend its subcontract engineering services.
The investment will be divided among the four group businesses that comprises Streamline, Kingsway Precision, Weldex and Pressex. Together, they provide specialist waterjet and laser cutting, precision engineering, welding, pressing and assembly services.
Responsive’s customer list includes Airbus, BAE, Siemens and Exxon, and the expansion is aimed at developing further opportunities in the defence, aerospace, oil and gas and other key market sectors.
Up to 30 new engineering jobs will be created across the group companies and the group anticipates the resultant sales growth will increase company turnover to over £10 million.
Responsive became an independent business in the middle of 2005 after a management buy in/management buy out (MBI/MBO) led by managing director Peter Bernard.
The investment has also attracted Selective Finance for Investment support from regional development agency One NorthEast.
Peter Bernard said, “We are delighted by the confidence shown by One NorthEast in the group’s management and staff and in our business plans. The capital investment programme has been planned since the change in ownership following the buy out last June and will represent the biggest investment drive in the history of the company.”
The first stage of the new investment in advanced plant and new equipment is expected to take place in late summer.
Ian Williams, Head of One NorthEast Business Investment & Finance Team, said, “The £225,000 grant we have offered Responsive will create 30 valuable new jobs as part of its extensive investment programme in its business. We are delighted to be able to help this forward thinking company with its expansion plans to capitalise on new market opportunities.”