AMERICAN owned Teignbridge Propellers Ltd is making a multi-million pound investment but at the same time is likely to make 28 workers redundant.
The company, based in Great Western Way, on Newton Abbot's Brunel Industrial Estate, had been rumoured to be closing or moving to Plymouth.
Those rumours were scotched by managing director Sean Cummings, who said the company had a long and proud history and was committed to maintaining and building upon its
reputation as a world-class supplier of integrated underwater gear systems.
'We expect to be a significant employer in the area for many years to come,' he said.
Teignbridge Propellers, a division of Mercury Marine and Brunswick Corporation, announced a restructuring plan to its employees on Friday.
That projects a doubling of revenue in the next five years and a multi-million pound investment programme.
'Our business plan has been designed to dramatically improve output and customer service levels
by moving the company from a custom environment to a proper high volume production facility,' said Mr Cummings.
That involves a major new plant and bringing in new systems and
technology.
Mr Cummings said a high fixed
cost base and low levels of efficiency needed to be addressed 'but unfortunately 28 people will likely be made redundant'.
He said: 'We are very disappointed when people lose their jobs.
'However, this plan ensures the long-term viability of Teignbridge
Propellers Ltd and protects nearly 100 jobs.'
Mr Cummings revealed that the company had not been profitable for years but he was confident the strategy would provide a bright future for the company, its customers, employees and the community.
Future investment would focus growth on the leisure yacht market.
Currently, the company is in a 30-day consultation period with its employees.
New equipment, a pattern mill, is scheduled to arrive during the next fortnight. The company's new capacity should be in place by January 1.