DAVID Brown has scrapped plans for a multi-million pound move to Mirfield.

The engineering firm has abandoned the scheme to build two new engineering centres on land at Leeds Road, Mirfield, and instead will redevelop its existing premises at Park Works, Lockwood.

David Brown had planned to move 270 of its 400-strong workforce to a new centre of excellence for gear manufacture and a wind turbine gearbox research and innovation centre at Mirfield (pictured), while retaining the rest of its staff at Park Works.

The firm was granted planning permission for the Mirfield scheme – despite opposition. Now the company has decided to stay put and develop the new facilities at Park Works.

David Brown landed a £2m grant from the Government’s Regional Growth Fund to add to its own £2.8m in developing the facilities.

The decision means that a deal agreed by Kirklees Council and David Brown last year for the council to buy 11 of the 17 acres at Park Works – on condition that the company relocated within Kirklees – will not go ahead.

In a statement, David Brown said: “Following the strengthening of our order book in the first half of 2013 we have undertaken a thorough review of all our strategic options to support growth and meet increased customer demand, including the move of part of our operations to a Mirfield site.

“Taking all factors into account, commercially the strongest and most viable option is to make this investment in our historic Parks Works site.”

David Brown said the firm had strengthened its order books in the first half of 2013 – particularly in the areas of defence and renewable energy – and had seen an increase in orders from customers in the oil, gas and conventional power sectors following the launch of its new HX series of high speed gearboxes.

It said: “Over the last year the business has successfully launched significant new products to market, including the innovative 7MW offshore wind turbine gearbox for Samsung, a CX series of conveyor drives for the mining and metals industries and an innovative tidal gearbox.”

Steve Watson, managing director for David Brown Europe, said: “We continue to invest heavily so we can deliver our ambitious growth plans.

“David Brown has been on this Park Works site for more than 100 years and, after considering all the options, has decided to invest significantly in the modernisation of this historic facility.

“We would like to thank the local council in Kirklees for their support during this process as well as the UK Government, which has actively facilitated our move into new markets.”

He said: “We are building on our established presence in traditional sectors such as defence, while driving future growth in other expanding markets such as oil and gas and renewables.

“The UK business is key to delivering the engineering and manufacturing for these sectors and, with a strong order book, we are investing significantly to ensure that our historic site becomes a 21st century centre of excellence for gear design and manufacture.”

The decision was welcomed by Colne Valley Conservative MP Jason McCartney .

He said: “David Brown is a fantastic, innovative company which is investing in the future. They have had some good news on orders and contracts and I am pleased they are staying in my constituency.”

Kirklees Council leader Clr Mehboob Khan said: “It is positive that David Brown continues to remain in Huddersfield for the long-term. It is a decision I fully appreciate.”

Clr Khan said he did not see the decision as a setback for Mirfield 25 and the council remained determined to market the site for industry, adding: “Anyone who says this is not a good news story is talking the town down.”