Skipton-based Kingsley Cards has announced its intentions to make redundancies and ship its production out to China.

In a letter to the firm's workforce, managing directors Brian Phipps and Glenn Lewis explain that the relocation is due to difficulties in finding a suitable base in the time span available.

The company currently occupies the former Dewhurst's Mill site, which was sold to property developers Novo Homes nearly two years ago.

The company's lease is due to expire and it now plans to produce in China, operate a warehouse in Bradford and keep the design and administration functions in or close to Skipton.

But documents acquired by the Craven Herald show that the company turned down an offer to move into split site premises at The Crossings Business Park in Cross Hills.

Craven District Council's chief executive Gill Dixon has written to directors asking for an explanation as to why it rejected splitting the location of the business on two sites in Cross Hills, but is now splitting the business between Bradford, Skipton and China.

And Coun Mick Hill accused the company of having a hidden agenda to move its production to China from the outset.

"My reading is that they have moved the goalposts every time Craven District Council tried to find them a proper site," said Coun Hill.

But managing director Mr Phipps dismissed that and said that the twin site approach was progressing with Craven District Council until two months ago when the possibility of a new relief road in Cross Hills across one of the sites was suddenly raised.

"The company was faced with the time, background work and considerable expense of putting in a planning application and it being squashed by other agencies," he explained. "Against the background of all this was the fact that time was running out. We have to be out of our current premises by the end of September 2006."

Mr Phipps pointed out two-thirds of the staff would be retained locally in the design and administration side of the business.

In a statement to the Herald, Craven District Council said a potential site of the required size was identified and the council had been working with the company to resolve issues which could have prevented the development. It appeared one of the most major obstacles had been resolved.

"However last week the council was informed by Kingsley Cards that their board had decided not to pursue a planning application for the identified site stating it was now too small to meet their current business expansion needs.

"They also stated the timescales of delivery of such a large site would not meet their needs for relocation and that due to competitive pressures in the industry, they would be moving some production to China.

"Kingsley Cards now proposed to refocus their site search to a smaller site to retain the design, sales and administration within Craven whilst the warehousing and production units will move to separate premises outside of Craven."

It is estimated that around 40 workers could be made redundant while another 120 employees would have to move to the new premises. The bosses said the redundancies would hopefully be achieved by natural wastage.

"Most, if not all, of our competitors are moving much of their production to the Far East to take advantage of the substantially lower costs that are available," said Mr Phipps' letter to employees.

"If we were to do nothing, our prices would become uncompetitive within a year or so and our customers, despite the excellence of our designs and service levels, would simply buy elsewhere. Indeed, this process has already begun, with at least one prominent retailer taking steps to drive down the cost of cards to the end consumer," he explained.

The company must be out of Dewhurst's Mill by September 30, 2006 and the bosses say work has been ongoing for a year-and-a-half to find a new home.

They said: "Over the last 18 months we have worked hard with the local council and numerous other agencies in an attempt to find a suitable site in or near Skipton, so that the skills of the current workforce could as far as possible be retained."

Novo Homes, which bought the mill for a reputed £3 million, wants to convert it into 124 homes, shops, offices and restaurants.