A HIGH-TECH aerospace component manufacturer has signed a ten-year deal to continue operating from its Hull factory.
Böllhoff Armstrong in Foster Street, Stoneferry, manufactures wire thread inserts for engineering industries.
Its customers include Rolls Royce, Airbus, UTAS and Siemens.
The company was launched in Beverley and known as Armstrong Precision Components before a 2010 buyout by family-owned German manufacturer Böllhoff.
Managing director Leigh Burgoyne said: "The commitment of our head office in Germany to staying at our base here in Hull is a real signal of confidence in the quality of the workforce.
"Obviously, when the business was bought by Böllhoff in 2010, there was some concern here that, come the end of our lease in 2014, the decision may be taken to centralise the business and move production back to Germany.
"However, we have developed a supremely efficient manufacturing team here."
The factory is the only UK manufacturer of Helicoil inserts, making about 80,000 a day and 18 million a year.
Between 3,500 and 4,000 go into almost every Rolls Royce Aero engine produced.
Its 50-strong workforce may have been concerned for the site's future when the previous 15-year lease ran out, but Mr Burgoyne believes the extension is a vote of confidence in staff.
He now hopes the company can continue building its business.
Hull's technology sector is expected to grow, thanks to energy giant Siemens' decision to build a wind turbine facility in East Yorkshire.
Mr Burgoyne said: "There are many opportunities for us to expand upon what we do at this site, for us to grow and create more jobs.
"Our strategy for growth is focused on the aerospace sector.
"As a group, our emphasis is on developing new applications using the latest manufacturing technology."
Böllhoff negotiated its new lease with landlord Stoneferry Estates.
Director Tom Healey was "delighted" by the deal.
He said: "It is really encouraging that international companies such as Böllhoff see a bright future for Hull.
"Knowing them well, it's great to see their enthusiasm for a city they care deeply about.
"Having been aware Böllhoff had the opportunity to move the business to Germany, it really shows the international attraction and competitiveness Hull now has."
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