World famous fishing tackle manufacturer Hardy & Greys aims to double in size within the next five years.

The plans come after dramatic restructuring saw the Alnwick-based company make 16 redundancies at the end of 2005 after moving reel production from its headquarters to Peterlee.

It has farmed out manufacturing abroad, upped its exports and moved out of solely producing its celebrated fly-fishing gear into coarse angling equipment and even making aerials for military vehicles.

And as the changes began to take effect, 2006 saw the 128-year-old company generate £9.1m worth of sales, 10% up on the previous year and £4.6m higher than 2003. In three years, Hardy's has reduced costs by moving 80% of its manufacturing to the Far East and by looking beyond its traditional fly-fishing market into sea, carp and coarse fishing.

As part of this strategy, Hardy & Greys took over European distribution for the US company Fishpond in 2006 and in 2005 bought Chub, an Essex-based carp fishing equipment firm.

It now employs 87 people, most of whom are located at its headquarters, with seven employed at a new 50,000sq ft warehouse in Cramlington. Hardy's managing director Richard Sanderson said: "Three years ago, 66% of our staff were employed in manufacturing our products. Now that figure is less than 20% [about 20 people], with a far greater emphasis placed on sales and marketing and research and development."

Now after driving through the changes and seeing the business double in size since his arrival in 2003, Mr Sanderson is bullish about the future. He said: "We are confident of achieving our objectives by continuing to incorporate three main thrusts to our strategy.

"The first is that our products are now largely manufactured in the Far East and, as a result, they have become price competitive in foreign markets like the US [because the pound is much stronger than the dollar]. Secondly, during the course of 2007 we anticipate producing around 350 new products with in excess of 500 anticipated for 2008, which will give us a tremendous sales boost.

"Thirdly, we are aiming to expand in all markets where we are currently under- performing. Despite enjoying a significant share of the fly-fishing market, we have now also entered the carp and course fishing business and they are the biggest parts of the UK market."

Another small but significant division is Hardy's Advanced Composites, which generated £1m worth of sales in 2006, 10% up on 2005 and an increase of £300,000 on 2003. It produces lightweight graphite tank aerials and communication poles for the MoD.