Hardide (LON:HDD), the provider of advanced surface coating technology, opened a new production facility in Virginia, USA, on Thursday.
It is part of a US$7mln project in Martinsville-Henry County to expand its production operations to North America, due to higher demand from the US and Canada.
Production testing is underway, with volumes expected to start in the second quarter of this year, the firm said.
Following the trials, production for customers in North America, currently being carried out in the UK, will be transferred to the new site on a case-by-case basis, Hardide said.
Philip Kirkham, chief executive, said: “Having a local production facility in North America will support the increased demand from existing customers and boost opportunities to expand provision of our coatings throughout the region.
The 26,000 square foot facility will produce the company’s range of hard wearing tungsten carbide coatings for the oil and gas market.
Shares rose 1.5% to 1.37p.