A pottery company in Stoke-on-Trent is to spend �7m renovating and expanding its factory, securing the future of 650 staff.

Family-owned company Dudson Ltd also expects the expansion to create 100 new jobs.

The investment goes against the recent trend of pottery firms moving their operations overseas, said chief executive officer Ian Dudson.

"A lot of work is now being outsourced because of the lower cost manufacturing, but we decided we would be best served by investing in the skills we have got locally."

Dudson Ltd

Founded in 1800 by Richard Dudson Factories at Burslem and Tunstall Exports to more than 80 countries Specialises in products for restaurants and hotels

Dudson will spend �7m upgrading its Duraline factory at Tunstall.

The expansion - which will be completed by 2004 - was made possible by the purchase of 4,500 square metres of adjoining land.

Old buildings will be demolished to make way for new mould-making and clay-making departments.

Dudson expects to increase its annual output well beyond its current level of 13 million pieces of tableware.

In March, shareholders at Royal Doulton voted for a rescue package involving the closure of the Baddeley Green factory in Stoke and an increase in production in Indonesia.