AN engineering company is hoping its new premises and investment in equipment will pay off - to the tune of £3million.

UK Insulations Ltd has invested in a range of new machinery as part of its plan to hit £9m turnover.

It also has ambitious plans to expand its workforce in an attempt to generate growth over the next year.

The company has relocated to a new 34,000 sq ft premises in Belthorn which will accommodate the company's growth plans to increase turnover by more than £3m.

UK Insulations Ltd, which recently relocated from a former 14,000 sq ft cotton mill at Grimshaw Park, Blackburn, was founded in 1997 as a manufacturer of flexible electrical insulation.

Since then it has reported year-on-year growth and currently employs 40 staff and is on target to hit £6m turnover this year.

The company has also diversified into films and papers for non-electrical use and also launched a slitting machine service to cut rolls of film and paper for customers.

The company is also looking to expand its share of the global export market, which currently includes Europe, the Middle East, North and South America and Australia.

Ian Billing, managing director and one of the co-founders of UK Insulations Ltd, said: "The time was right to relocate and invest in new equipment that will make us much more efficient and productive.

"We have been planning the next phase of the business' growth for the last 12 months. It has been a challenging time for us but Yorkshire Bank have been very supportive and we have now put the platform in place to achieve our long-term goals of increasing exports, hitting £9m turnover and increasing staff numbers to more than 50."

During the expansion the company called on business experts at Yorkshire Bank's financial solutions centre in Blackburn.

The bank helped UK Insulations Ltd finance the acquisition of forklift trucks, electric pallet trucks, racking systems, cranes and hoists at a cost in excess of £110,000.

Yorkshire Bank also supported UK Insulations' move to the new premises which will enable them to expand the workforce.

The company relocated at the end of 2007.

Nicola Fairclough, asset finance partner at Yorkshire Bank's financial solutions centre, said: "UK Insulations has capitalised on its position in a specialist niche industry to establish itself as an extremely successful business.

"Over the years it has continually grown and diversified into new sectors and this latest investment backed by Yorkshire Bank will vastly improve the company's performance and hopefully be the catalyst to take the business on to the next level."