A Lincolnshire building firm is biting back at the recession with a £500,000 expansion plan.

Over the next six months, the Gelder Group will create extra offices and warehousing at its Sturton-by-Stow headquarters.

It will also build a new access road to the site and will revamp its training academy.

The news comes despite reports that the construction industry has been badly hit by the economic downturn.

Company MD Steve Gelder said his firm had not been immune to the effects of the recession.

But he said now was actually the perfect time to invest in new buildings and to spend money on staff training.

"Ironically, it is actually a great time to build because everything is cheaper than it has been in years," he said.

"Builders and suppliers have reduced their margins because everyone is desperately competing for businesses."

Mr Gelder said it was also essential to continue staff training during the downturn so firms have the skills to compete when things pick up again.

"It is our aim to develop a training academy which produces the best workforce in the industry," he added.

For more on the expansion plans, see Monday's Echo.