The factory closed in September despite efforts to keep it open

Garden furniture firm Benji and Company has offered to take over the KTH factory site in Llanidloes from its owners the Welsh Development Agency (WDA).

The company employs 11 people at a town centre site but its owner say the move would provide 51 new job by 2006

However, Peter Rees says he will move his company to the Merthyr Tydfil area unless the WDA backs his proposals by a 14 November deadline.

I was born and bred in Llanidloes and want to keep my business in the town Peter Rees, Benji and Company

The plan has been backed by Llanidloes councillors who claim the current site of the business is causing noise pollution and traffic problems in Llanidloes.

Benji and Company sells repaired garden machinery, tools and furniture at auctions across the UK.

Mr Rees says the five-year-old firm has secured �20m contracts with major DIY centres nationwide and provides up to 2000 lots for auctions every week.

"I was born and bred in Llanidloes and want to keep my business in the town - but the current premises is too small and can't be expanded," he said.

"There are vacant units at the Parc Hafren business park but these are too small so the only site that could provide what we want is at the KTH site."

Part of his buy-up plan is a �200,000 redevelopment of the KTH building.

The company is currently based just off Llanidloes' main street

"I've got a young daughter and I want to stay in Llanidloes.

"But if this falls through I will have to look to move the company to the Heads of the Valley area where there are premises big enough to accommodate us."

Llanidloes Mayor Edward Breeze said the town council has sent a letter to the WDA supporting Mr Rees' application.

"The business is currently based in the middle of the town and we have had a lot of complaints from residents about noise pollution and the number of lorries that go through the town to it every day," he said.

Sustainable

The WDA is one of several agencies developing a regeneration strategy for Llanidloes in the wake of the closure of the KTH factory.

The strategy includes the building a new link road from the KTH site to the Llanidloes by-pass.

"We are working closely with our partners to consider a range of options open to us to bring much needed investment and employment back to the site," a WDA spokesman

Among these are the complete redevelopment of the site including new business units, he said.

"At this stage we are not prepared to raise expectations by speculating on individual ideas for the site.

"We must ensure that whatever development takes place must be sustainable and in the long-term interests of the town and the people."