A HEREFORD industrial firm is nearing completion of a multi-million pound project providing vital parts to the overseas oil industry.

KGD Industrial Services secured a lucrative contract worth £15 million more than 18 months ago to supply centrifuge packages to a Floating, Production, Storage and Offloading (FPSO) unit which will be stationed 900 kilometres off Australia's north west coast.

The Rotherwas-based group, who employ more than 100 staff, has already assembled two smaller devices which have been sent to South Korea before being installed onto the FPSO and sent towards the Australian coast.

A larger centrifuge package, which is currently being built at Rotherwas, is due to leave for Korea in September with another set to be completed by KGD by the end of this year.

The contract was awarded to KGD, which produces fluid handling systems for the offshore industry, back in December 2012.

"It's one of the biggest orders we have had," said the firm's operations director, Ed Pitt.

"We have increased our staff numbers for this contract and we're currently up to about 112 people."

The order was placed by German-based GEA Westfalia, a company KGD has worked with for many years.

KGD began life in 1982 and has traded from its current site since 1988. It has also expanded its facilities onto the Three Mills Trading Estate off Old School Lane in Hereford.

It has taken on eight apprentices so far this year, adding to the seven it brought on board in 2013.