Dontyne Gears has relocated from Prudhoe to Sunderland, moving closer to related businesses in its manufacturing chain.
The company develops software used in the automotive which focuses on the research, design and testing of gear systems. As part of the move to Sunderland, Dontyne has invested £100,000 in machine tools and is looking to increase its workforce in the near future.
Dr Mike Fish, managing director, said: "We’re very excited about the move which has given us a chance to expand and be part of what is going to be an internationally significant manufacturing destination.
"With Nissan, Caterpillar, Cummins, ZF and others on our doorstep and of course the International Advanced Manufacturing Park (IAMP) next to it, the area is set to become a Silicon Valley of the automotive industry."