A COMPANY which was hit by a multi-million pound fire has received a double boost as it bids to secure the future for its 250 workers.

Duralay International's bid to take over one of its biggest competitors has won the backing of Rossendale and Darwen MP Janet Anderson.

And the Haslingden-based company is about to officially open the new warehouse and distribution facility built in the wake of the devastating blaze.

The firm's multi-million-pound deal for the Gates Industrial and Consumer Group was put on ice after the intervention of the Director General of Fair Trading.

The bid was referred to the Competition Commission amid fears that Duralay would dominate the carpet underlay market if it took over the Treadair range.

Speaking after a visit to meet the management team at Duralay, Mrs Anderson said she would be writing to Patricia Hewitt, Seceratary of State at the Department of Trade and Industry, in support of the company's takeover plans.

Following talks with managing director Geoff Harrison and personnel director Gordon Fletcher, Mrs Anderson said it was important the deal went ahead to safeguard the future of Duralay's 250 employees in Haslingden.

With the popularity of wooden block flooring, there had been a fall in carpet sales, which had a knock-on effect on the underlay market.

"Duralay wants to amalgamate to cut overheads," said Mrs Anderson.

"Unless they can do this, they say that they cannot maintain their own market position."

If the deal with the Gates Group went ahead, Duralay would have more than 70 per cent of the market for carpet underlay in the UK.

While Mrs Anderson said she understood the fears that the company would use its monopolistic position to increase prices, she said they were unfounded.

"There is a real limit to what people are prepared to pay for underlay," she said.

"That is the message we must put across to Patricia Hewitt and the Competition Commission."

Mrs Anderson has already been in communication with Melanie Johnson, Minister for Competition, Consumers and Markets over the deal.

She added that the Competition Commission would be announcing its recommendations on the takeover on October 18.

Duralay was hit by a major fire in November last year which caused millions of pounds of damage to a warehouse.

More than 150 firefighters fought to keep the blaze in the middle warehouse under control.

Specialist investigators were called in to try and discover the cause of the blaze.

A new warehouse and distribution facility has been built on the site, which will be officially opened later this year.