Fife-based EPS Services & Tooling has been awarded £140,000 of regional selective assistance funding, while EPS will invest £520,000 on buying new equipment and moving to a 6,600ft2 facility near its current base at Kirkcaldy.

The Scottish Enterprise grant safeguards the existing six jobs, with EPS committing to create an additional six positions by the end of 2014.

EPS Fife general manager Steve Goodlad said the funding support helped cement the move, planned for December.

"We are very grateful for the funding as we believe the Kirkcaldy base has room to grow and we’re investing in that growth," he said.

"EPS is now the largest Scottish-based service provider to timber mills in Scotland, which is in turn the largest area of timber production in the UK, so the expansion makes sense for all concerned."

Mr Goodlad said the 2,500ft2 Kirkcaldy operation, opened in 2007, had grown considerably during the last five years.

"EPS is a small company, but it’s willing to invest in its own growth and that’s what we’re here to support," said Lena Wilson, chief executive of Scottish Enterprise.