As a result of the merger, the expanded company is projected to turnover in excess of £9 million ($13.6 million) in 2016 with headcount set to rise from 80 to more than 100 across the three sites.
Omega Group will be led by Dave Crone, group managing director; Gary Powner, Omega Plastics managing director; Alan Franklin, Signal Plastics managing director and Julian Jamieson, operations director at Signal.
Omega Plastics and Signal Plastics will retain their individual trading names.
Commenting on the merger, Dave Crone said: “Both of our businesses had proved successful in their respective markets but there were sufficient complementary overlaps in our products and processes to make a strategic alliance of the two almost inevitable.
“Omega Plastics will continue to provide first class design, tooling, molding and assembly with the added benefit of specialist high volume molding provided by Signal Plastics.
“This combination of our resources and expertise means Omega and Signal are now even stronger together.”
Omega Plastics was formed in 2006 and was originally based at Team Valley, Gateshead. In 2007 the company moved into a purpose-built 930-square-meter factory in Blyth. Five years later and in order to increase production capacity Omega opened a second facility in Hartlepool.
Since its launch in 2007, Signal Plastics has moved three times into increasingly larger premises. In January 2016 the business will move to a new 3,900-square-meter facility in Washington.
Signal Plastics managing director Alan Franklin, said: “Like Omega Plastics, our business has experienced sustained growth in a relatively short period.
“The merger has provided the stability we need to complete our latest move to a much larger site and to make further investments in the plant and machinery that will increase our production capability. We’re also aiming to create more than 20 new jobs over the next year and together with our colleagues at Omega we will be sharing best practices and offering improved career development opportunities to our workforce.”
The Omega Group will continue to provide rapid and production tooling products as well as plastic injection molding to customers across a range of sectors including automotive, electronics, fast-moving consumer goods, medical, personal care and bio-tech.