AN expanding Hereford engineering company that manufactures old extraction equipment for export has bought the derelict wire mill site at Wiggins Special Metals in a £2 million deal.

The move marks a major expansion for KGD Industrial Services, based on the Rotherwas Industrial Estate.

"This will mean we can increase our operation and will overcome some of the problems associated with the Rotherwas site," said owner Ken Davies.

He confirmed KGD would continue to operate from Rotherwas where it was founded in 1976.

The seven-acre wire mill in Old School Lane will be used for assembly and final testing and storage.