BCW Engineering has been awarded a £75,000 Grant for Business Investment from North West Development Agency, which it said will help towards building a new warehouse in Burnley or expanding to another unit in the area.
Paul Biggs, co-founder and technical director at BCW Engineering, said: "We are using the NWDA grant as investment for equipment and with that comes a need for somewhere to put the equipment so we're looking at a number of sites in Burnley.
"We've had an offer on a brownfield site, which the NWDA owns, but are still in discussions with them over it. We're looking at a greenfield site as well and are in negotiations about leasing an existing unit belonging to one of our customers. I can't say more than that really.
"The provision of this grant will be the springboard for us to realise our strategy for the next phase of our development. It is essential that BCW invest in new equipment to enable us to meet our customers' needs which will not only secure the position of our existing employees but also bring further employment to the Burnley area."
The firm, which has 80 employees over two existing sites at Phoenix Way and Bancroft Road, provides aerospace, automotive and marine components.
Investment will assist BCW Engineering in creating 15 new jobs over two years. The firm was established in 2002 and in 2008 became suppliers to Jaguar Cars and received approvals from BAE Systems and Aircelle.
Following the Grant for Business Investment, BCW Engineering will invest a further £861,000 into the business to ensure it can meet growing customer demand. The new equipment will increase the company's production capacity and ensure work is more efficient.
The NWDA grant is part of 'solutions for business', the Government's package of publicly funded business support designed to help companies start and grow.