STATIONERY factory RD Industries has been bought out of administration for about £500,000 and will restart production on Monday with many of the 75 redundant workers likely to be re-employed.

Folkestone-based art, craft, toy and stationery manufacturers and distributors West Design Products has purchased the Estover-based firm and its assets.

It will be renamed after its new owner and about half the redundant workers will be given jobs immediately.

West Design Products managing director Mike Bray said even more workers could be brought back if he can "reclaim the customer base".

Mr Bray was born in Saltash, where he still has family, and went to school in Plymouth.

"I look forward to the growth potential that will come with linking with what was RD Industries," he said.

"My family are there (in the Plymouth area) and I have always been aware of the company, and followed its fortunes, they were a competitor of ours.

"I felt that putting the two together would create an even bigger operation."

RD Industries made stationery, commercial labels and children's craft packs for chainstores and schools in the UK and 26 countries worldwide.

It went into administration last week, with managing director Roger Dymond blaming the banking system.

He said his firm's inability to borrow £500,000 of "working capital" pitched it into crisis even though it had orders worth £200,000 and was shifting up to £150,000 of products a week.

RD Industries had a £475,000 loan and Mr Dymond said the bank was "running scared".

When an 11th-hour bid to buy the company was also turned down by the bank, the 30-year-old family-run firm went into administration with 75 workers left jobless.

Family-owned West Design Products has 100 workers in Folkestone, Kent, and another 20 at a plant at Kidderminster, in the Midlands.

It makes products for stationery brands such as Blick and Stephens. It also imports international brands such as Faber-Castell and Maped.

Mr Bray said the rapid completion of the acquisition of RD Industries was made possible by "the support and co-operation of its bankers".