Ceramics group Beauford says there is massive potential for its newly aquired insulators firm in markets in the Far East.
The company, which already owns Wade Ceramics at Burslem, announced yesterday it is buying Allied Insulators at Milton, Stoke-on-Trent, for up to £9 million from the Fairey Group.

Allied employs 360 here and at a factory in Tamworth and foundry at Coseley, near Bilston.

It manufactures high voltage porcelain insulators.

There have been a handful of redundancies recently due to a ''significant reduction in trading'' this year.

The Government's windfall tax on privatised firms - which resulted in orders from rail and utility customers being suspended - is being blamed for this.

Last year, Allied Insulators had a turnover of £17.3 million.

Edward Duke, chief executive of Beauford, visited the Milton site yesterday.

He said there are no plans for further job losses and, instead, it will be drawing up long term expansion plans.

''First of all, we intend to invest in sales,'' said Mr Duke.

Currently, eight of the 10 countries which use most electricity are in North America or Europe, he said.ÊBy 2010, though, most will be in the fast expanding economies of the Far East. ''Their growth rate is quite phenomenal,'' said Mr Duke.

Beauford is planning to establish a sales office in Asia. It already has a US subsidiary in Kentucky.

It will fund the acquisition of Allied Insulators through an £8 million share placing.

Subject to the approval of shareholders on November 13, it will initially pay £8 million, plus a further £1 million if Allied Insulators achieves profit targets next year.

Chairman Sir Trevor Holdsworth told investors: ''Allied Insulators is particularly well positioned to take advantage of the forecast trebling of world demand for electricity in the next 30 years, estimated to require capital investment of up to $3,000 billion (about £1,875 billion) in generation, transmission and distribution infrastructure.''

Fairey said it will use the cash from the sale to reduce its borrowings.

It also owns Fairey Industrial Ceramics and research and development arm Fairey Tecramics at Fillybrooks, Stone. They employ about 250.

A spokesman for the group declined to say whether it has any plans for these subsidiaries.