A FAMILY-run machine manufacturer in Thirsk is looking to increase its workforce after receiving its first major order from India in 20 years.

Compact Engineering, based at Thirsk Industrial Park, has won a deal to supply infrared paper dryers to Emami Paper Mills – one of the largest newsprint and paper groups in the country.

The order will see Compact increase its employee numbers from six to nine as the business looks to increase its presence in international markets.

Established in 1986 to deliver energy-efficient solutions for the pulp and paper sector, Compact Engineering specialises in the production of shortwave infrared lamps and dryers to dry paper and board as it is being made.

Compact’s advanced technology reduces the amount of energy required to make a tonne of paper or cardboard and optimises the performance of the existing drying system.

Following a decline in orders from Europe, where the business historically traded, bosses are looking to expand into the Far East and the US as Compact continues its trend of exporting 70 to 90 per cent of its output.

Founder and managing director of Compact, David Klemz, said: “This new contract with India’s Emami Paper Mills is testament to the hard work and dedication of the team in Thirsk.

“It is an exciting time for the business, and our expansion plans will help us fulfil the strong demand for our high-tech solutions and support the future growth of the business.

“We do have machines in India, but this is our first major order over there for 20 years.

“We are a predominantly export-based business. We would love to do more trade at home, but the market isn’t there.

“We are doing a lot of work in America as the market is recovering there, and find we are doing a lot more in the Far East, with a big order win in China last year.

“We have changed our focus on the markets. Some years ago we only dealt with Europe, but that market has been hit by low confidence in the paper industry, and as a result we are now looking to grow further specifically in China and Indonesia.”

The latest deal was supported by trade finance facilities of £470,000 from Santander Corporate & Commercial, and funding from the Government body UK Export Finance.

After this initial contract is delivered, Compact Engineering will become a preferred supplier for future contracts.

Richard Shuter, relationship director for Santander Corporate & Commercial, said: “We are delighted to be supporting Compact Engineering with its plans to grow overseas.

“This is an exciting development for the business, with further contracts expected from this key new relationship in India.”

Jonathan Leonard, senior export finance adviser at UK Export Finance, said: “UK Export Finance was a vital cog in ensuring Compact Engineering was able to secure the funding it needed and I believe it can now capitalise on further opportunities that exist in the market place.”