Two worsted cloth makers have joined forces at a time when demand for Yorks-hire cloth is riding high in world export markets.

One of the most famous names in the industry, John Foster of England Ltd, based at Black Dyke Mills, Queensbury, has acquired the 150-year old business of Edwin Woodhouse Ltd of Farsley.

Foster set up a new company, Edwin Woodhouse (1857) Ltd through which to compete the purchase.

Woodhouse has closed its production site, with the loss of around 30 jobs. It is now a manufacturer without looms and its fabric is produced by contract weavers in Keighley and Huddersfield.

Edwin Woodhouse produces high quality men's suiting fabrics and exports 94 per cent of its worsted cloth worldwide. The business has a turnover of £2.5 m.

Following the deal, Edwin Woodhouse will continue to operate from Sunny Bank Mills. Jonathan Spencer has been appointed managing director.

He said: "Unfortunately, it was no longer viable to continue running our own production operations. However, our cloth is still being made in West Yorkshire and continues to see strong demand.

"The new business will be part of the John Foster of England group, who themselves were part of a buyout six years ago.

David Gallimore, Foster's managing director, said: "I am delighted such a famous brand is part of the group. We have tried to retain as many jobs as possible and nine people will remain within the business."

The group will have a turnover of £6m, employ 26 people and export around 97 per cent of its output.

The move comes at a time when a number of state-of-the art production units in Keighley and Huddersfield are working flat out to weave and finish worsted cloth for Europe, the Middle East and Far East.

Peter Ackroyd, pictured left, director of the Bradford-based British Wool Textile Export Corporation, said the label "made in England" was a recognised mark of quality.

He said: "Although the volume of British cloth exports are down, the prices are up as discerning customers are prepared to pay a premium for the best products.

"The bulk wool textile manufacturers have long gone, but those who have focused on this market have seen their products stay in demand. Japan has always been an important market, although with the fall in the value of the yen trading has become tougher there - but the strength of the Euro has seen Italy bounce back.

"The history, reputation and quality of Yorkshire cloth stands us in good stead when it comes to taking on competitors in international markets."