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A £2m factory could be built in Powys by the Welsh government to help with a company's expansion plans.

Newtown-based Zip-Clip, which makes suspension systems for the construction industry, could move to a site at Welshpool if the plans are agreed.

The firm started in 2004 with three people and now employs over 30, exporting products to 22 countries.

The expansion plan comes after it secured new contracts and it expects to double its workforce within five years.

The Welsh government plans to lease the new factory on its site at Offa's Dyke Business Park if Powys council agrees to the planning proposals.

Economy Minister Edwina Hart said: "The new facility, which is subject to planning approval, will ensure the expansion goes ahead in Wales and enable Zip-Clip to meet the growing global demand for its products and create a significant number of new jobs in mid Wales over the next five years."

Glyn Davies, Conservative MP for Montgomeryshire, said it was "good news not just for the company itself, but for the local economy".

"I have visited Zip-Clip on a number of occasions, and always been impressed by the company's professionalism and ambition," he added.