A Shropshire manufacturing company today revealed it is winning its battle against the global recession, announcing ambitious plans to create a £1.3 million extension at its Telford plant.

Tool-making giant Makita Manufacturing Europe is to create the development in Hortonwood alongside its factory, safeguarding the jobs of the existing 450-strong workforce.

Bosses say the 3,530 square metre extension is needed to keep up with the “rapidly increasing” worldwide demand for its high quality power tools with new jobs a possibility when the economic conditions improve.

Makita is the only manufacturer of power tools in the UK, producing more than 8,000 tools a day from the Telford plant.

Paul Harris, Makita operations director, said: “Our success underlines that Telford has become the new China and our dedicated workforce has made us the mother company for Europe.

“We are outsourcing more and more components to British suppliers and need extra capacity at Telford to handle production supplies.”

The company said against the current commercial trends, Makita’s investment in new capacity at Telford reflects the success of the British manufacturing facility where 90 per cent of the annual production of 1.5 million power tools is exported.

The new facility, to be built by Shropshire contractors McPhillips Civil Engineers, will add capacity as production is increased.

Colin Tivey, chairman of the Manufacturing Advisory Service – West Midlands which supports manufacturing in Shropshire, added: “This is excellent news for Shropshire and the West Midlands in general and shows what can be achieved by an innovative, forward-looking company committed to growth.

“Even against one of the most difficult economic pictures seen in decades, Makita Manufacturing Europe has continually invested in new machinery and tooling to help it secure a bigger share of the marketplace.

“The fact that all 450 jobs will be safeguarded as a result of this latest expansion is fantastic and encouraging for the increasing number of UK suppliers who work with the company.”

By Business Editor Amy Bould