Hi-tech engineering company SMD Hydrovision is celebrating its biggest contract to build a single machine - a massive £7m undersea vehicle.

The Tyneside business, which employs 100 staff, is thriving on the back of a boom in the oil and gas supply industry and it has exceeded its expectations of pushing sales from £8m last year to £30m this year.

The company focuses on making ROVs (Remotely Operated Vehicles) but has also been involved in tidal energy projects, and was the company behind the rescue attempt for the stricken Russian submarine, the Kursk in 2001.

Mark Collins, sales manager, said: "Our order book is full right up to the middle of 2007, which is pretty much unheard of in this industry.

"Systems we do go to Brazil or west Africa, the Gulf of Mexico, but also for use in the North Sea.

"We have worked pretty hard to get here - positioning ourselves for when the market was strong. It's really quite exciting - years like this in our industry are really a blip so we have to enjoy it when it happens.

"We have also just secured an order for the world's largest ROV system, known as the UltraROV. A more standard ROV will generate 100kw of power - this one will generate 2mw.

"It will be ready in August 2007 and will specialise in pipe burial, and sell for between £7m and £8m."

Mr Collins said under sea engineering companies Hallin Marine and Subsea 7 had been the firm's biggest customers this year, with both companies now equipped with a fleet of ROVs.

He said: "The ROVs are used for subsea inspection and construction work, doing a similar job to a diver but usually in areas which are too harsh for a diver to be."

Mr Collins said the boom in the offshore oil and gas industry currently was good for his company, but it was also making life difficult in recruiting good staff. He said: "We are struggling a little to recruit. It's difficult getting the right people, but I think we are up at 100 now, with a few contract workers.

"In the oil and gas industry in Aberdeen, things have gone mad up there.

"Good, experienced people have migrated up there. Companies outside Aberdeen are finding a lack of suitably qualified people."

SMD Hydrovision works from two bases in Newcastle - on Wincomblee Road in Walker and on Davy Bank in Wallsend.

• A standard ROV from the company is a 2,000 litre model - about the size of a Ford Transit van but which retails for £2m, or about 100 times the cost of the van.