Clayton Engineering has secured funding worth nearly £100,000 from the Welsh Assembly government to support its expansion after winning a contract from the Royal National Lifeboat Institution (RNLI).

It will build a £500,000 extension at its Knighton premises in Powys, where it will produce seven launch-and-recovery system vehicles for the institution.

The firm currently employs 42 people, and this investment will safeguard eight jobs, as well as create opportunities to train at least three new workshop personnel.

Managing director David White said: “We are carrying out a significant investment programme to develop our infrastructure and train new personnel in order to enhance the company’s capability and resources.

“A key element of this strategy is the new welding facility, which will enable heavier and much larger structures to be manufactured on-site.

“It will also allow a significant expansion of the stores and goods inward department into the space vacated by the welders, once the new workshop has been completed towards the end of March.”

Ken Skates, the Welsh Assembly government’s Economy Cabinet Secretary, said: “This is a really significant contract for Clayton Engineering and testament to its advanced-manufacturing expertise, capability and highly skilled workforce.

“I am delighted the Welsh Assembly government is able to support the company’s growth and expansion with a Property Development Grant that will ensure the business remains highly competitive and will continue to provide a world-class service from Mid Wales.

“It’s good news to hear that the company is nurturing home-grown talent, developing its workforce and creating opportunities through its apprenticeship scheme.”