By Daniel Hunter

A UK maritime engineering firm has been bought by a subsidiary of train maker China South Rail.

Zhuzhou CSR Times Electric will pay £130m for Specialist Machine Developments (SMD) which is based in Wallsend in the North East.

SMD will continue to operate as an independent business, but CSR president Liu Hualong said the Chinese firm would help it to expand into global markets.

SMD manufacturers remotely operated underwater vehicles (ROVs) and advanced submarine engineering machines and currently exports to 30 countries.