A WELSH carpet factory owned by a Huddersfield firm is to close with the loss of more than 100 jobs.

Meltham-based Fred Lawton and Son Ltd is closing its Mid Wales Yarns business at Llandrindod Wells.

The factory, which Fred Lawton bought two years ago, employs 109 workers who will all lose their jobs.

Bosses at Fred Lawton blamed high production costs and low turnover for the closure.

Glyn Davies, Welsh Assembly member for Mid and West Wales, said the plant's closure was a devastating blow to the town.

"It isn't possible to overstate the impact this will have," he said. "Llandrindod Wells has proved over the years to be a difficult town to attract good manufacturing businesses."

Kirsty Williams, Assembly member for Radnorshire, called on Fred Lawton to co-operate with the Welsh Development Agency to help secure new jobs for the workers.

Fred Lawton bought Mid Wales Yarns from Lancashire-based carpet maker Gaskell in August, 2002.

At the time, Fred Lawton said the takeover would allow the company to expand into different product areas, including synthetic fibres.