Expansion continues after buyout.

A TYNESIDE coatings company expects to boost its sales after increasing its workforce and investing in new equipment, and now plans to make a name for itself in the offshore oil and gas market.

AMD Specialist Coatings in the Team Valley Trading Estate, Gateshead, expects to pass the pounds 1m turnover mark in three years' time after hitting sales of pounds 650,000 last year following a buy-out by managing director Steve Davis in 2008.

The firm, which was set up almost 10 years ago, has gone from four to 16 staff and is looking to add a further four posts over the next 12 months after investing pounds 125,000 in a new shot blasting facility that allows it to strip away old paint from metallic structures.

It recently signed an agreement with defence firm Pearson Engineering in Walker, Newcastle, to use its coatings material to protect technical components found in mine clearing equipment.

The firm is also close to receiving Norsok approval from marine firm Cameron, which will provide it further opportunities to gain oil and gas and defence work after receiving an offshore contract with Soil Machine Dynamics in Wallsend.

The firm now expects to add another pounds 100,000 to its sales this year, before hitting pounds 1m in 2013. The firm said it would consider moving into new premises further south if it exceeded its targets, but was not planning any expansion at its 8,500sq ft site in Gateshead.

Managing director Steve Davis said: "I feel that AMD has developed much over the past year; however I also feel that there is a lot more potential to be exploited.

"We are close to becoming Norsok approved which will provide us with further opportunities with oil and gas and defence work, and with the country slowly pulling out of the recession, I feel the only way for AMD is upwards.

"Over the past year we have moved more into the oil and gas and defence sectors whilst maintaining our signage and fabrication services. We have acquired several national companies as new customers and these successful relationships are bringing further business from other companies."