Surface Transforms, which has developed brakes for high-performance vehicles including the Porsche GT3 and the Nissan GT-R, has secured a £600,000 funding boost and outlined plans to open a new factory in the Liverpool city region.

The Ellesmere Port-headquartered brake manufacturer has accepted an offer from the Merseyside Special Investment Fund of a combined package of £500,000 via the Regional Growth Fund, comprising a £200,000 grant and a zero-interest loan of £300,000. The loan is repayable in accelerating amounts from May 2019 to May 2022.

In addition, Surface Transforms told investors that it has been offered financial support from Knowsley Council to establish a new factory.

Following the funding, the company has signed heads of terms with the owners of an existing building on Knowsley Business Park. The agreement covers a 2.1-acre site with a total building footprint of 55,000 sq ft.

The business intends to occupy the property in two phases, taking 30,000 sq ft from September 2016 and 25,000 sq ft from September 2019. Its current 12,000 sq ft site in Ellesmere Port will be vacated when the lease expires in early 2017.

Kevin Johnson, chief executive of Surface Transforms, said: "These announcements are a significant milestone in the development of the company.

"The recent half-year statement included details of one aerospace and five automotive "game-changing" contracts which, if all were successfully concluded, would in total, build up to £15m per year of sales in the period 2018 to 2020.

"Our current site is insufficient for a company of that size and we have therefore been searching for a new site which can both cope with this "pilot plant" demand level as well as providing further space for target sales beyond £15m per year in subsequent years. It is pleasing that we can provide this update to both prospective customers and shareholders."