PLANS to expand at a Ryedale manufacturing firm could secure jobs and increase capacity, say company bosses.

Engineering firm Micro Metalsmiths plans to extend its Kirkbymoorside site.

The two-storey building would be to the south of the existing factory, and would be built in stages as the firm gradually increased its business.

Chief engineer Ben Shaw said: "We want to try and increase our efficiencies, so we can increase our capacity with the same number of people."

Mr Shaw said the company, which was forced to make redundancies earlier this year, would be focusing on the Kirkbymoorside site - expanding as its Pickering site closed.

He sent out a reassurance to employees that their jobs would be more secure.

He said: "Things are picking up gradually, but steadily.

"We have absolutely no plans to make anyone else redundant.

"Who could have forecast September 11 or the collapse of the telecom industry?

"That was the reason we had to make people redundant - because we lost 25 per cent of our business overnight."

Mr Shaw said investment at the Kirkbymoorside site showed the company's commitment to the future development of Micro Metalsmiths.

The proposed extension is being recommended for approval by Ryedale District Council planning officers, despite several letters of objection to the scheme from nearby residents.

Concerns expressed include fears about extra surface water and the possibility of increased noise.

Ryedale's development control officer Gary Housden said in a report to the council that he considers the application acceptable, although certain conditions would have to be imposed to protect local residents.

Members are due to decide on the application at a meeting on Monday.

Updated: 10:46 Saturday, August 03, 2002