A rapidly-growing design and construction company which supplies specialist modular laboratory clean rooms for the pharmaceutical industry is settling into a new UK headquarters in York.

Pharmaspace Ltd, which began as a division of pharmaceutical production equipment company Extract Technology Ltd in Huddersfield - part of Carlisle Life Science Europe - has taken offices at Chestnut Court Business Centre in Lawrence Street, York.

Its choice of York as a world centre underlines the city's growing international reputation as a centre for biosciences and research, and today brought a big welcome from Dave Taylor, marketing director of York Inward Investment Board.

He said: "The company first contacted us from our website where we're promoting the Science City York bioscience initiative and we immediately set about finding them suitable accommodation."

Already Pharmaspace Ltd is armed with millions of pounds worth of orders from around the world, and a major supplier will be Portastor Communications, in Huntington Road.

The biggest contract so far is worth at least £7 million over the next two years from pharmaceuticals giant Eli Lilli, for its production facility making anti-cancer treatments in Puerto Rico.

Its clean, fully-fitted module laboratories are also in demand in Ireland and the U.S., and negotiations are under way with a number of UK "blue chip" companies.

Although seven people have moved into the new headquarters, links are being kept with the 120-staff Extract Technology Ltd, for the modular building equipment fit-outs, and the numbers at York are expected to swell to about 12 over the next two months.

Chris Langley, director and general manager of of Pharmaspace, said: "We wanted to be in York because the specialties of our business are in accord with the York Bioscience Initiative and it is easy to attract the right people to work here.

"The offices are ideally suited to our business plan and we have the added benefit of being located minutes from our alliance partners."

Paul Boldy, operations manager, said: "There are businesses which can deliver the products and services on offer on a worldwide basis.

"Our experience in specialist modular buildings is rooted in York and our ongoing development will rely on the fact that York is a great place to live and can offer an attractive environment for our ongoing needs."

Ken Smith, technical and commercial manager, said that many of the staff were originally from York, all with significant experience in the industries in which they now operate.

"Our future strategy is founded on long-term plans for being based in York," he said.

Longer-term plans involved adding laboratory fit-out facilities.

"We are already providing overall project management, but really aim to be recognised as a 'total solutions provider' in the pharmaceutical and bioscience industries," he said.

Anna Rooke, project manager of Science City York, said: "Pharmaspace will be a welcome addition to the fast-growing Bioscience York community, which is one of the city's major economic drivers.

"Investment decisions such as this demonstrate the established reputation of York as one of the leading bioscience clusters."

Updated: 09:23 Tuesday, May 28, 2002