Precision engineers H.Mullins (Earby) Ltd, of Western Road, Jarrow, has been a long-standing supplier for the defence industry.

But now the company's 25-strong staff are adapting to the latest developments in the oil and gas industries.

Managing director Mark O'Rourke, said: "This is all about diversifying the business, in order to protect jobs in the future.

"The recent rise in the price of oil creates demand for new equipment, as new wells and oil fields are explored.

"We aim to adapt our business and move with the times, in order to beat the worst effects of the recession."

Established in 1941 and originally based in Earby, Lancashire, the company busied itself making parts for the undercarriages of the famous Spitfire aircraft during the darkest days of the Second World War.

The lure of grant aid saw the firm relocating to the Bede Industrial Estate, Jarrow, in the early 1960s, with Mr O'Rourke's grandfather, Jack O'Rourke, buying out original owner, Harry Mullins, and later taking over as managing director.

A move to its current site in 1973 was later followed by Mr O'Rourke's father, John, taking over as factory boss.

South Shields-born Mr O'Rourke jnr, 35, who became managing director two years ago, added: "The company has seen many changes in the manufacturing industry.

"In recent years, the demand for general machined parts has declined dramatically in the face of overseas competitors.

"The company is a long-standing supplier to the Ministry of Defence and has, in more recent years, established a healthy customer base in the oil and gas industry.

"Continuing investment in new and better machinery, H. Mullins (Earby) Ltd is able to manufacture more complex and bigger components to suit the current trends and requirements of the UK market."