A NEW textile firm has started trading in Huddersfield.
Dyeing and finishing company Indygo has started production at Park Valley Mills, Lockwood.
The company, which has 50 employees, was formed in July with the merger of the dyeing and finishing arm of Drummond Parkland - which operated at Park Valley Mills - and Bradford cloth finisher Armitage.
The merger resulted in 20 redundancies, mainly among the 31 staff at the Bradford company.
The start of operations this week follows talks between Indygo's new management, employees and union officials.
A spokesman for Indygo said the company had got off to a solid start - with an agreement to continue supplying Drummond Parkland's former parent group, French- based textile group Chargeurs.
He said: "Our order books are strong and we have had a very positive response from customers of both former companies."
Chairman John Taylor said Indygo aimed to become a market leader in its traditional business of supplying the traditional wool clothing and worsted industry.
But he said the company also aimed to expand into supplying new markets, including furnishing fabrics.
Mr Taylor added: "We firmly believe the strengths of the two former companies on the Park Valley site makes commercial sense and provide Indygo with a strong competitive edge in a challenging market place."
Mr Taylor is joined in running the company by former Drummond Parkland operations director Brian Beaumont as technical dyeing and business director and Armitage employees Tony Foster as operations director and Stuart King as finishing director