A VALLEYS factory threatened with closure two years ago is expanding to take on more staff in an outstanding success story.

Three hundred jobs were under threat at Carpet International, on Pen-y-fan Industrial Estate in Croespenmaen, in August 2003, when the company went into receivership, blaming a downturn in the carpets market.

But in November 2003 general manager Robert Dight, managing director Jim Taylor, and managers Eddie Charlesworth and Martin Peace stepped in to buy out the factory and run it as an independent business, saving the jobs.

Today, in a remarkable turnaround, the company they formed, Abingdon Flooring, is the UK's second largest carpet manufacturer and plans to expand.

It aims to build a warehouse extension it says it needs to cope with increased sales and says the company could then employ a further 20 people.

The company has already taken on 80 extra employees since the buy-out and currently has 350.

In the last two years the firm has invested more than £2m of profits back into the factory, buying new equipment and improving the standard of its carpets.

Sales rose 20 per cent in 2004 with a turnover of £36m and 25 per cent last year with a turnover of £45m. They are projected to rise substantially again this year.

Director Mr Dight, 51, from Cross Keys, started working for Carpet International 30 years ago.

He said: "We are giving the customers what they are looking for - service and quality.

"We have also got an expert workforce. They have worked on this site for 25 years and know their jobs inside out."

Mr Dight says the company operates in a unique way, with all aspects of carpet- making under one roof.

"Between the four directors we have 110 years of experience in the industry.

"Carpet International employed 12,000 people across Northern Ireland, Wales and northern England. We employ 350 people in the Valleys and are making half what they did."

A planning application going to Caerphilly council's planning department tomorrow outlines a proposal to build a warehouse extension measuring 84m by 21m by 10m high on the southern side of the existing building overlooking Manmoel Road.