A LUXURY yacht manufacturer has said it must be allowed to extend its factory in Kidderminster or risk losing business overseas.

Sealine, which is based at Whitehouse Road, wants to create an additional 1,300 square metre unit on vacant land at the western side of the site facing the River Stour.

And it has warned failure to further develop its operations could lead to its multinational American parent company, which took it over last June, transferring work abroad.

In a report to Wyre Forest District Council's planning (development control) committee tonight, planning officer Mike Parker said since 1998 the company had nearly doubled its turnover, of which 65 per cent was exported, and increased the number of workers to 458.

In his report, which recommends approval of the application, Mr Parker said: "I am satisfied in Development Plan terms, the proposed extension is compatible with land use allocation."

He said consideration needed to be given to its impact on the sensitive land which neighboured the River Stour but he was satisfied the proposed site was sufficiently separated.

The Environment Agency has not objected to the plans providing flood plain capacity is increased on adjacent land.