More than 100 jobs could be created, the bulk of them in Swansea and Pembrokeshire, after the expansion of an engineering firm.
Unit Engineers and Constructors Ltd has bought Birwelco Ltd in a "multimillion-pound deal".
The company said it hoped the jobs would be created by 2013, with most at two Welsh sites, and the remainder in the west Midlands, where it is based.
The company makes parts for industries including oil, gas and utilities.
Swansea-based Unit Engineers and Constructors Ltd said the acquisition came after it worked with Birwelco on other projects.
The company forecasts an annual turnover of more than £50m for Birwelco by 2013.
Birwelco's base in the west Midlands will remain.
Bill Ledwood, managing director of Unit Engineers and Constructors, said: "We aim to create in excess of 100 skilled jobs in Wales as we take on the construction work on Birwelco's order books.
"This additional work will also have a significant positive knock-on effect on suppliers and sub-contractors in Wales.
"We also expect our export activity to significantly increase to make us one of Wales' leading exporters."