Half the workforce at a Keighley label firm, described only last month as "booming", have been told they are to lose their jobs.

Twenty-five workers at Ingrow-based SML Labels have been told they are being made redundant, only weeks after the company was being hailed as a success by regional development agency Yorkshire Forward.

Finance director Peter Hee confirmed that 25 of the 50-strong workforce had been told their jobs would go, but refused to comment further.

The firm was chosen by Yorkshire Forward as one of three in the region to take part in an event to bring in further investment from China.

SML has grown to become the third-largest label manufacturer in the world. It is part of a global empire owned by 42-year-old Chinese entrepreneur Suen Siu Man, who fled pennyless from China.

The Keighley factory was set up by general manager John Davison, for SML Labels, nearly two years ago. Production started in February last year, and it manufactures for top names, including Nike, Debenhams and Marks & Spencer.