Insider Media Limited

Stoke-on-Trent-based ceramics company Steelite is planning to use its new factory to produce a new line of tableware goods, chief executive Kevin Oakes has told Insider.

The site, adjacent to its existing Middleport factory, is set to create a further 239 jobs once it has been developed using the company's Regional Growth Fund (RGF) allocation.

Steelite won a multimillion-pound slice of the government funding in its second round earlier this year. Oakes told Insider it would create a new line alongside some of its most popular tableware items at its extended factory.

Oakes said the company, which specialises in creating tableware items, would continue to invest in the local economy.

"We have no desire or strategy to move any of our operations overseas," he said. "Steelite is a real heritage brand, and the words 'made in Stoke-on-Trent' are held in high regard. We have an outstanding workforce here – we have no reason to look elsewhere."

But despite his commitment to the region, Oakes admitted it was the international trade side of the business which was booming.

"The UK market is still undeniably quiet," he said. "About 80 per cent of the work we produce is for customers overseas. It's a very difficult domestic market; but I think it will start to bounce back further in 2012."

Oakes added that the biggest challenge for the ceramics industry in 2012 was "uncertainty".

"No one knows what is around the corner; we're constantly presented with this bad economic data, and just have to play the best hand we can.

"Throughout tough economic times, we've always reinvested back into the business," he added. "We have had to cut deep and hard at times; but we've always retained investment in our key areas, which has made the difference."

At its 2010 year-end, Steelite produced its best results to date, with pre-tax profit hitting £7.9m.

The company, which currently employs 650 people, recorded annual sales of £60.6m, up from £51.9m in 2009.