Staff at a Mid Wales firm are celebrating after the business won contracts worth a combined £1.25 million to supply three Formula 1 racing teams.

Compact Orbital Gears said the contracts to supply the teams with high-speed gearboxes have secured 25 jobs at its factory in Rhayader.

The company makes hi-tech parts for the aerospace and renewable energy sectors.

Managing director Gareth La Pajne said he was delighted to have earned the the contracts with the unnamed teams.

He said: “The company has secured three major contracts worth more than £1.25 million during an already excellent year for business.

“This has secured the jobs of our skilled workforce of 25 at Rhayader’s Brynberth Enterprise Park.

“We’ve created a niche in the market through our bespoke service – which is helping us to win orders from all over the world.

“Major companies, including Rolls-Royce, Westland Helicopters and Boeing, now recognise this company in the heart of Mid Wales can provide them with a complete package of design, manufacture, test and after sales service for very specialised engineering products.”

This month the company will be exhibiting to customers in the USA as part of a Welsh Assembly business plan.

Welsh Assembly deputy first minister Ieuan Wyn Jones said: “I congratulate Compact on its success in winning these latest orders.”

The company has been producing gearing systems in the town for more than 40 years.

During that time more than 2,000 original designs have been produced for range of aero engine, automotive and marine systems.