Malvern-based manufacturer Tricorn Group has revealed plans to establish a manufacturing facility in China to boost its strategic development in South East Asia.

Tricorn, which specialises in tube manipulation, said the plans were in reaction to customer demand, after operating in China for more than eight years.

Tricorn, which makes pipes and tubing for niche markets worldwide in the energy and utilities, transportation and aerospace sectors, is investing £1 million in the new factory.

The group said the new plant would bring it closer to its clients and “maximise the available efficiencies in the supply process”.

The facility will be focused on supplying Tricorn’s major customers who are operating in the region as well as developing business on a broader basis.

Chief executive Mike Welburn said China was a key location for all of the firm’s markets.

He said: “I am delighted to be announcing this important development. The group has had a purchasing office in China for the last eight years and as a result a well developed network of sub-contractors and suppliers.

“By establishing a manufacturing facility in China, Tricorn will play a leading role in helping its major customers localise their supply and reduce costs in their supply chain.

The group has a signed letter of intent with one of its largest customers and is well advanced with its plans for the establishment of the facility.

“China is a key market and this action will ensure that we are well positioned to maximise our opportunity for revenue growth.”

The company, which employs around 300 people, saw revenue increase 23 per cent, to £12.4 million, in the six months to September 30.

The improvement in fortunes also pushed up profits, with pre-tax profits rising from £449,000 in the first half of last year to £722,000.