Automotive manufacturer Trax JH has won a contract to supply Renault in a deal it says will protect 50 factory jobs.
Trax JH makes wheel balance weights and has plants in Welshpool and Newtown, Powys.
The parts to be manufactured for Renault, and its Romanian subsidiary Dacia, will be used in vehicles manufactured in France, Spain, Russia, Brazil and Argentina.
Trax JH says that more than 70% of its sales are now accounted for by exports. Europe remains the main recipient of these exports despite growth in further flung markets. Brazil, Russia and India are recognised to be strategic markets for future growth.
The new Renault contract is an important win for Trax JH which has seen sales decline in 2012.
Tax JH managing director, John Halle commented: “Company sales have been hit this year by the slowdown in UK and export markets. However, this Renault contract will help safeguard the 50 jobs in the company.”
Further stability for Trax JH in difficult economic times has been provided by HSBC and Finance Wales, which invests in small and medium-sized businesses.
Halle told BBC Radio Wales that the recent success with Renault was a contract which was seven years in the making. “This kind of business doesn’t come along every day,” he commented. “It really means that you can build on it for the future, which is very good news for us and everybody.”