Economy Minister Arlene Foster announced the £4.5m investment in high-tech machinery and equipment by Moyola Precision Engineering in Castledawson. Invest NI has offered almost £1m.

Moyola Precision Engineering manufactures high specification machined components for the aerospace, medical devices and automotive industries. Customers include Airbus, Boeing, Bombardier, Howden, Michelin, NACCO, Ryobi and Thales.

The investment will support the installation of the latest high speed precision machining centres and develop the company's computer-aided design and manufacture capability (CAD/CAM).

Mrs Foster said the company had built up a global reputation for high quality precision-machine components since it was set up 30 years ago.

"This indigenous company constantly seeks to be innovative in both product and process development. This has helped Moyola, in recent years, to achieve significant growth in the high value-added aerospace supply sector.

"This latest investment, backed by Invest NI, will see Moyola consolidate its position as a major player in this challenging international market.

"The new state of the art machinery will give Moyola a capability that is unique in Northern Ireland and put the company at the forefront of the UK aerospace supply sector."

She said the economic development agency's latest corporate plan highlighted how Northern Ireland's economy could grow by encouraging existing companies.

Moyola managing director Raymond Semple said the company generated around half of its turnover from the aerospace sector.

"With the global aviation industry currently experiencing steady growth, we see this area as key to our future business plans.

"This investment, the largest we have ever undertaken, will see us adopt the very latest in multi-axis machining plant, improving upon the same technology used by two of our major clients, Airbus and Boeing. We will be one of the first smaller aerospace companies anywhere in the world to have this capability, greatly improving the complexity of the components we can supply and our compatibility with key clients."

He said the new CAD/CAM equipment would improve the company's technical problem-solving abilities.

"This development of both manufacturing and design capability will significantly improve our position on the value chain and increase our chances of securing new and more lucrative business in the future."

The project is part-funded by the European Competitiveness and Employment Programme 2007-2013 of the European Regional Development Fund (ERDF).