BOOMING Gwent firm Surface Technology Systems is finding it hard to keep up with red-hot global demand for its leading-edge products.

The firm, which has space-age office and production facilities at Newport's prestigious Imperial Park, makes machines which are helping the modern wheels of business turn. STS chief executive Peter Martineau said: "Business levels went through the roof last year and hence the need for the factory extension."

Mr Martineau, at the Japan-ese-owned factory, said: "Our problems at the moment are getting the products out of the doors on time rather than attracting orders - the main problem that we have been addressing is how to ramp up production."

The new extension to the factory, which will be split between offices for engineers and production, will see the factory expand by about half its current size.

The firm, which floated on the London alternative investment market (AIM) in December last year, is helping to sharpen the leading edge of technology.

The £1m-plus pieces of equipment made by the Newport-based firm make equipment for the micro-technology industry.

The devices made by the STS machines enable its customers to carry out manufacturing of devices to perform tasks previously thought impossible.

The devices are items such as miniature gyroscopes and accelerometers for use in cars. Switches for optical fibre data transmission are also made by the machines made by STS, as are tiny gadgets for bio-medical applications.

STS, which has its base at Newport's Imperial Park, recently staged its first annual general meeting since its flotation.

STS chairman Nigel Randall told shareholders: "In recent months some of our markets have witnessed considerable fluctuation, but it appears that despite this, investment in new microtechnology devices is continuing.

"Our customers want to be ready with new products as the market cycle moves towards growth. Competition for the available business is increasing.

"In such market conditions I am sure you will be pleased to learn that shipments already made this year added to the committed forward order book meet the sales expectations the board has for the year. STS markets are being driven by technological change and investment in new products is continuing.

"Our new advanced silicon- etch HRM (high-rate machine) was announced to the market recently and orders are expected shortly. We shall start delivering this highly competitive new machine in the fourth quarter of this year.

"This new product will help STS build on the investment already made."