A firm’s decision to keep its operations and more than 50 jobs in the county has been hailed as a boost for Kent manufacturing.

There had been fears that AEI Compounds might switch from Crete Hall Road, Gravesend, to a new location outside Kent.

But the firm was given a business investment grant to move to a larger factory in Great Stonar Road, Sandwich. The switch was welcomed by inward investment chiefs because it keeps manufacturing jobs in Kent

Paul Wookey, chief executive of Locate in Kent, said: “It’s great news that AEI Compounds is reinvesting in Kent, especially at a time when the manufacturing sector is suffering across the country. The fact that such a well-respected company has decided to recommit to the county is testament to the county’s business benefits.”

The firm expects most of the company’s 57-strong workforce in Gravesend to transfer, but is recruiting locally to fill any vacancies.

The subsidiary of TT Electronics plc manufactures and sells plastic compounds used in the manufacture of electrical cables and water pipes for clients across the globe.

It says the new facility will treble production capacity and grow market share, particularly in the Middle and Far East where its high specification products are in big demand.

The new production line starts volume production this month (Oct) with existing machinery being moved by the end of January 2010.

Mark Shaw, managing director, said: “This investment in our business is essential if it is to remain a leading player in the global wire and cable market, where competition from low cost manufacturing economies continues to increase.

“Despite the current challenging market conditions the business has continued to thrive with a strong performance in the last financial year, backed by revenue growth of 27 per cent and volume growth of 21 per cent.

“Much of the success has been attributable to a culture of developing innovative new products, matched to customer demand and backed up with extensive technical support. This customer focussed strategy will remain the key driver for AEI Compounds as it moves into its next phase of development.”