HIGH oil prices are good news for one Hereford firm, which has just landed a £600,000 order to supply lubrication equipment for an oil rig in the North Sea and is looking at the prospect of further expansion.

The order for the Huldra rig in the Norwegian sector of the North Sea is the second of its type in the last few months.

Owner Ken Davies, who employs more than 60 people at KGD Industrial Services, believes high oil prices will lead to further orders for new exploration projects.

"Over the past six months we have designed, built and despatched oilfield equipment to Brazil, Korea, Germany, Holland, Nigeria, Qatar, Sudan, Norway, France, the USA and Gulf of Mexico," said Ken, aged 55, who founded the company 30 years ago.

"Our levels of enquiries are at an all time high for all our oil industry products. This will lead to expansion of our facilities and increased workforce.

"It shows that a traditional manufacturing company making high quality products for the right market can still be competitive."

KGD has an annual turnover of £5 million. As well as supplying customers all over the world it also undertakes projects for Herefordshire companies including Bulmers and Smith Kline Beecham.