ALMOST 100 jobs have been saved and a dozen created following a management buy-out at an expanding North-East car parts manufacturer.

The boss of DPE Automotive Limited predicted "great things" for his company now it had taken ownership from United Steels Limited with backing from investors Andrew Lapping, Rudi Wright and Rivers Capital Partners Limited.

The deal will help the Newton Aycliffe manufacturer, which supplies clients such as Nissan, Gestamp, Magna, RTEK, DS Smith and Johnson Controls, to strengthen its position in the industry and supply new customers.

In recent weeks, it recruited 12 staff, taking the total workforce to 110, as well as invest £1.5m in new presses and earmark £500,000 to raise the roof by four metres to accomodate larger presses. The latter move is subject to planning approval.

Furthermore, there are plans to take on up to 10 additional staff in the new year.

Peter Coates, DPE managing director and joint owner, explained how the buy-out had been crucial to safeguarding the firm's future.

"Under our previous ownership it would have been a case of ongoing decline - there is no doubt about that," he told The Northern Echo.

"There is under-capacity in this sector. The likes of Nissan and JaguarLandrover are looking for more UK-based suppliers and we have reacted to help us capitalise on that opportunity."

Mr Coates, who also heads DPE's sister firm Durham Precision Engineering, it targeting customers in the oil and gas sector as well as aiming to tie up deals with every major automotive supplier in the UK.

He added: "Having successfully completed a smooth management buy-out with the help of Square One Law, we are now in the position where we are financially strong and have seen our offering change within a few short months.

"We now have a strong financial footing within the automotive sector, which is seen as favourable with the big players within the industry. Having already had talks directly with two of the UK's leading manufacturers since the buy-out, we can see there are great things ahead."

Mr Coates said the ongoing support of his investors, and backing from Barclays bank, would be key to the company's future.

"The team which has been formed has years of dedicated experience behind them, with their own individual success - meaning I now have the additional support behind me to be able to carry out structured and measured projects within the business - drawing from their experience, I aim to be able to deliver company targets year on year, giving DPE Automotive the chance to become a bigger animal within the industry." he explained.

Rivers Capital fund manager, Michael Dickens said: "This investment has been great for the region, safe guarding jobs and creating the perfect example within automotive excellence.

"It’s in a great location and represents great news for people within County Durham."

Senior associate Marie-Louise Bozonet led the Square One Law team that advised on the buy-out and fundraising. She said: "It was a pleasure to work with Peter, Andrew, Rudi and Rivers Capital on the deal. The DPE Automotive team has great plans for the business and I hope this will be a success story for manufacturing and engineering in the North-East.

“This is a sector that they expect to see significant growth and investment in over the next few years and I wish them all the best with their endeavours."

Law firm Ward Hadaway represented Rivers Capital through the deal.