A Dundee engineering firm is preparing to expand after raising £500,000 from the Scottish Investment Bank and private investors.

Albacom said the money will be used to support marketing activity, expansion of the company’s international footprint and further scaling of its engineering operations, creating up to 20 new jobs within three years.

“This investment will create more high-quality jobs and will provide us with working capital to manage the long lead times we can experience on some projects,” said Albacom chief executive Jim Davidson.

Formed out of the 1990 management buyout of the Dundee division of former electronics and defence company Ferranti, Albacom specialises in electrical components for the global defence and aviation industry and has diversified in recent years into new commercial sectors.

The funding includes a £400,000 loan from the Scottish Loan Scheme, a Scottish Government-backed scheme that is administered by Scottish Investment Bank, the investment arm of Scottish Enterprise.