The owners of a troubled west Wales engineering firm are optimistic they can proceed with plans to create 400 new jobs.

The Pontardulais-based Teddington Bellows has been caught up in a complex legal battle, which led to receivers being called in.

The company, though, has a bulging order book and attempts are being made to buy time to sort out the legal issues.

Teddington Bellows was on the brink of bankruptcy a year ago before John Scofield, a US-based British businessman, stepped in with his company Thermatrix and transformed the company's fortunes.

New business orders were secured and with a bulging order book the firm was poised to move to a new and much bigger site close by.

But the company was then threatened by a £5m debt left over by the previous owners, which nearly closed it down for good two days before last Christmas.

Workers faced a bleak festive period when they were told they were losing their jobs.

Mr Scofield has secured a stay of execution in the American courts.

'Confident'

He said he is now confident that the debt can be paid off and Teddington can press on with its expansion plans at Cross Hands.

The new factory promises to create 400 engineering jobs, many of them highly skilled.

"We continue to receive new orders but if you were to read the media, you would think we were going out of business.

"That is not the case by any means, orders are up 10-fold."

Quoting Mark Twain, Mr Scofield said reports of the company's death had been exaggerated.