Development agency Invest NI is backing a €6.4 million investment in a facility that produces equipment for the oil drilling industry.

A subsidiary of US giant Baker Hughes is planning to invest £4.6 million (€6.4 million) in expanding an existing facility in Castlereagh, Co Antrim, that manufactures drilling equipment for oil rigs.

Invest NI said yesterday that it has agreed to contribute €1.26 million to the total cost of the expansion project, which it says will create an extra 50 jobs at the plant.

The Baker Hughes subsidiary, known as Hughes Christensen, will design and manufacture polycrystalline drill bits, which are the business end of the equipment used to drill for oil and gas around the world.

Demand for these products has been growing as oil and gas prices rise and supplies come under pressure.

Hughes Christensen is a leading producer of this type of equipment.

Its general manager, Ian Warke, said "global demand for technically advanced products, together with our existing manufacturing and technical skills, has resulted in this project being secured in Northern Ireland".

Commenting on the deal, Invest NI chief executive Leslie Morrison predicted that the move would reinforce Hughes Christensen's position in the marketplace.

"In addition to the benefits to the company, including highly customised product design, the establishment of this new facility further establishes Northern Ireland as a prime location for high value-added product design and manufacture," Mr Morrison said.

Hughes Christensen has been operating from its base on Montgomery Road, Castlereagh, since the 1950s. It employs 300 people.

Baker Hughes is headquartered in the US and employs 34,000 people worldwide.