A multi-million pound factory and headquarters has been completed for a long-established Ilkley engineering firm, just over ten years after the business cut its workforce amid difficult trading conditions.

Industrial equipment manufacturer Spooner Industries cut back its workforce by more than a third in 1998, but has since made major investment to transform its fortunes.

The construction company contracted to create a purpose-built new base for the firm has announced that it has completed the £3.5million project on Railway Road.

Founded in 1932, Spooner manufactures large dryers, ovens, coolers and oxidisers for a range of industries including paper, converting, food and metals.

It was previously based at a leased neighbouring site, which is now the subject of proposals by supermarket chain Tesco to build a new store.

Spooner began to move its offices to the new headquarters late last year, and moved its manufacturing processes in the early part of this year.

Part of the old factory site is still used for storage, but this is expected to move into the new factory shortly.

The 56,000 sq ft development was built by North Yorkshire construction company Houseman and Falshaw. It includes a factory, test, research and development centre, office and visitor facilities.

With more than 100 staff, Spooner is one of Ilkley’s biggest employers and exports its products all over the world.

Managing director Michael Brook said the move to purpose-built facilities has been a success.

He said: “It’s working very well. It’s a very successful move and a successful building project. We’re very pleased with it.”

Mr Brook said the company has continued to keep a healthy number of orders on its books, although, like most firms, it does not know how seriously it will be affected in the current economic climate.

“The future of the company looks fine, except for the credit crunch. We don’t know what that’s going to bring, but in all other respects we’ve had a good year.”

He said there are still some small finishing touches to be made to the new site, including some trees which are still to be planted.

Spooner Industries was established in 1932 by Ilkley resident William Wycliffe Spooner, an engineer with a string of inventions to his name. The company has been on Railway Road since the 1950s.

Spooner shed a third of its workforce in August 1998 – just months after making 15 redundancies – as it struggled against foreign competitors because of a strong pound.

At the time, the company spoke of redeveloping the land its new factory is now built on, possibly for retail, leisure, small industrial units or housing.

But by 2002, the company, following investment to modernise its equipment, had gained an £8 milliom leap in orders.

Its plan in 2006 to move to a smaller, purpose-built unit on land it owns attracted both support and opposition from members of the local community.

Some residents living near the site feared it would lead to noisy disturbance and lower the value of their homes.

Others spoke out in favour of retaining jobs in the town.