A long established county engineering firm has been awarded a £3.5 million loan so it can relocate within the county and expand.

The Stroud Metal Company has gained the investment from the Gloucestershire Infrastructure and Investment Fund (GIIF) to create a factory and office space on a new site off Brunel Way in Stonehouse.

The business has been producing precision components at its site in Stroud for over 100 years.

With roots dating back to the 19th century, Stroud Metal Company was officially incorporated in 1926 and is still a privately owned, family run business continuing to build upon its £6million turnover. More recently the company has acquired Cotsworld Plastics Ltd, further growing the workforce.

The loan will enable the organisation to bridge the gap in between the construction of the new premises and the relocation of the business.

The two phase project, which will create 100 local jobs, will begin by constructing a new factory and office complex. This is due to open in December 2017 and will incorporate a green energy initiative including the installation of solar panels.

Once fully operational, the company intends to offer three apprenticeships a year, helping to further grow the local economy.

Matthew Large, Managing Director of Stroud Metal Company and Cotsworld Plastics, said: "The support of GFirst LEP, Gloucestershire County Council and Stroud District Council were key to this project and without their assistance we could not have made it happen.

"Stroud Metal Company is thrilled to confirm that the construction of their new premises at Brunel Way, Stonehouse, has now commenced.

"The land at the 5½ acre site has been cleared and is being prepared to accept a 79,000sqft bespoke premises to accommodate both Stroud Metal Co and their sister company, Cotsworld Plastics.

"The investment in this new factory safeguards 62 highly skilled engineering jobs and will reinforce our position as a global player in the manufacture of deep draw metal pressings and plastic injection mouldings to the advanced automotive, aerospace and medical markets.

"It will also help us develop the young engineering talent we need to help us grow further."

David Owen, chief executive of GFirst LEP, added: "I'm pleased that a long established county business has been able to secure this loan from the Gloucestershire Infrastructure and Investment Fund - it's great to see that Stroud Metal Company will create over 100 new jobs and support apprenticeships within the county."

David Hagg, chief executive of Stroud District Council, added: "We supported the Stroud Metal loan application as a critical part of retaining the company and jobs within Stroud district. By helping the company move and expand into Stonehouse, its existing site in Dudbridge can be redeveloped as part of a wider regeneration scheme."

Gloucestershire County Council acts as accountable body and provides the programme management for the GIIF fund on behalf of GFirst LEP. For further information about the Gloucestershire Infrastructure Investment Fund, visit www.gfirstlep.com.

Artist's impression shows how the new factory will look