BUMPER demand for Wensleydale cheese has led to the Hawes creamery taking over its closest rival.

Creamery directors announced on Monday that the company had bought the Fountains Dairy at Kirkby Malzeard, near Ripon.

The take-over means production can double in a bid to meet increasing demands for its full range of cheeses, developed in the eight years since a management buy-out saved the Hawes plant from closure.

The deal also brings to an end rivalry between the two companies, both of which claimed to be the home of "real" Wensleydale cheese.

Supporters of Hawes' claim say the tradition dates back to 12th century monks in the upper dale, while the Fountains dairy maintained Jervaulx was the home of the original cheese. The Kirkby Malzeard plant even changed its letterhead address a few years ago, adding "Lower Wensleydale" - a geographical claim disputed by many in the upper dale.

Mr David Hartley, managing director of the Wensleydale Creamery, said: "Hawes is the spiritual home of Wensleydale cheese. This is where it all started. Kit Calvert built the business that is going today. Things have really gone full circle; both Hawes and Kirkby Malzeard were once part of Kit Calvert's Wensleydale empire and now will come together once again."

The take-over means plans to extend the Hawes factory have been put on hold - although that expansion might still go ahead in future years.

The 39 workers at the Kirkby Malzeard plant, formerly owned by Crewe-based trading company Murray Vernon, have been told their jobs are safe.

Mr Hartley said: "We had been looking to develop the site at Hawes and we had planning permission. Almost as we were going out to tender for the new building, the Kirkby Malzeard factory came up for sale. The project at Hawes has been put on hold for now, although it may happen in a few years' time if demand for our products continues to grow."

More cheese-making capacity would be installed at the new plant and discussions with contractors have already begun.

The two factories, 33 miles apart, would be run as one fully integrated business thanks to information technology and electronic communication.

Since 1993, the Hawes creamery has gone from employing 11 and producing 340 tonnes of Wensleydale cheese to a workforce of 136 who are on target to make 1,500 tonnes this year.

Fifty upper Wensleydale farms supply the creamery with milk, which goes into the traditional dale's cheese. Other varieties on the order book, such as Cheshire, Double Gloucester, Leicester and Sage Derby will be made at Kirkby Malzeard.

The recently launched organic Wensleydale will also be made at Hawes as well as the miniature truckles, including 250,000 Wallace and Gromit Wensleydales.

Mr John Gibson, chairman of Wensleydale Dairy Products, welcomed the signing of the deal. "We believe it is the best possible outcome for both companies," he said. " We have an excellent workforce and a strong team of directors. Hawes creamery has simply run out of room to meet demand; now we can make twice as much cheese and develop new lines at Kirkby Malzeard."

Mr Hartley said: "We are confident the move will bring long-term security and economic benefit to Hawes and Kirkby Malzeard.