A Telford manufacturer today announced it was taking on up to 30 temporary workers to cope with demand for new vehicles partly due to the Government’s car-scrappage scheme.

Bosses at Denso Manufacturing UK (DMUK) said they were creating the extra jobs after the initial success of the “cash for bangers” scheme.

In March, the Hortonwood-based firm announced it was axing between 145 and 175 workers and had restructured its organisation due to the global downturn in the automotive industry.

But the firm said today there were some signs that the “scrappage” incentives in several EU countries was stimulating demand for vehicles, typically in the small vehicle segment.

It currently employs about 700 people and has a sales turnover of about £160 million, producing on average 60 million components a year. The temporary workers are being taken on with the support of a recruitment partner, Mploy.

Fifteen workers started yesterday and the rest will be joining the firm over the next couple of weeks.

The extra staff will help Denso meet its initial requirements over the next four months.

Hayashi Suzuki, Denso’s managing director, said: “This is welcome news for DMUK and the community as a whole.

“Our recent restructure has left us better equipped to deal with these volume fluctuations and we hope that the outlook for demand continues.”