Government funding of £200,000 has helped a West Yorkshire engineering firm create 12 new jobs and secure seven others.

The grant to Halifax Rack and Screw Cutting Co. Ltd, at Brighouse, is the first from the second round of funding from the Regional Growth Fund. It will go towards a £1.5 million modernisation of the company’s production facilities.

Halifax Rack and Screw makes precision products for the construction, engineering, offshore and energy sectors.

HRS employs more than 40 people in a 30,000 sq ft purpose-built factory.

Initially founded to serve the precision machine tool industry, the firm has successfully diversified into other industrial sectors.

HRS has invested more than £2 million in new machinery, computer technology and training and now exports more than 50 per cent of its turnover worldwide.

Colin Jones, financial director, said: “This investment, a continuation of the heavy capital outlay made by the company over the last few years, will help to further enhance the company’s world-wide reputation as a high quality, niche precision engineering company.

“Improved production efficiencies will help expansion plans both within the domestic and export markets in a variety of sectors including engineering, construction, offshore and energy.”