Building work has started to extend the Glasgow headquarters of manufacturer Rearo Laminates Ltd as part of a £500,000 investment expected to create 10 new jobs.

The company, which makes bathroom and kitchen wall panels, worktops and flooring, revealed the £200,000 project will add some 2,000 sq ft and form a link area between its two existing factories.

The new building is the first phase of a £520,000 capital improvement programme which will also include new and upgraded machinery, such as a new bonding and panel processing line. A Regional Selective Assistance (RSA) grant of £100,000 will partially fund the programme.

Construction work on the expansion will be carried out by a neighbouring Govan-based company AGM Group Ltd.

Graham Mercer, managing director of Rearo, said: “The expanded factory will provide vital space to support our ambitious growth plans, including a new sampling and marketing suite, and we expect the overall investment to create 10 new jobs at the company.

“We are targeting sales of more than £5m of our new Selkie waterproof panel system in the first year, so we need to hold a large amount of stock to be able to deliver to customers quickly.

“We have already invested around £250,000 in transforming production processes and working practices, developing new products and embedding a commitment to customer service across the company. This gives us a solid platform from which to target larger construction projects in the hotel, restaurant and social housing sectors.”

Rearo has seven customer branches across the UK, as well as its Govan premises. The company is going through a period of growth, with turnover now reaching £10m. Rearo has also recently struck a deal with Scottish interior designer and TV home makeover specialist, John Amabile, to be a brand ambassador for its new Selkie waterproof panel system.

Andrew Meek, managing director of AGM Group said: “Rearo has supplied its products to many AGM projects and it is now our turn to return the favour. With this project we are linking Rearo’s operations, enhancing our supply chain, building better relations and improving the future of both businesses.”

Work is expected to be complete by spring 2018.