Workers at Waterford Wedgwood's Barlaston factory are being told to stay at home from next Friday.

The Stoke-based company says it is because they have currently got more stock than they can sell.

The site will not be completely closed although several hundred staff will be affected. Wedgwood has just announced plans to take over Royal Doulton.

'Challenging' market

The two firms have joined forces in a bid to smash cheap imports.

Wedgewood has valued Royal Doulton at �39.9m ($76.9m).

The takeover will ensure some of Doulton's famous china continues to be made in the UK. The firm is currently in the process of shutting down a factory in Nile Street, Stoke with the loss of 500 jobs.

Waterford Wedgwood, founded in 1759 by Staffordshire-born potter Josiah Wedgwood, already owns 21% of Royal Doulton.

In November, Wedgwood said like-for-like sales for the six months to 30 September were down 5% and trading remained "very challenging".

Doulton and Wedgwood are two of the last names still operating in the Potteries region of Staffordshire, famous for its clay and coal deposits which triggered a booming pottery industry in the 1700s.

Waterford Wedgwood plc was established in 1986 with the merger of Waterford Crystal and Wedgwood and employs about 9,000 people.