Dyson looks set to double its profits this year after its controversial decision to move manufacturing from Malmesbury to Malaysia.

In August the company announced washing machine manufacturing would be following in the footsteps of vacuum cleaner production, which moved to the Far East last year. More than 865 manufacturing jobs have been lost at the plant so far.

Founder-owner James Dyson said the increase in earnings and sales justified his decision to relocate.

"We are a much more flourishing company now because of what we did and it's doubtful if we could have survived in the long term if we had not done so," he said.

Dyson's profits are expected to reach about £40million this year more than twice than the previous year's. In 2002 the company made £18m profit and £16m profit in 2001.

Mr Dyson said these figures were significantly lower than the £35m achieved in 2000 because of escalating manufacturing costs in the UK .

The firm, which currently employs 1,200 people in Malmesbury, is putting the 2003 rise in profits down to its move to Asia, where it is now supplying the US market and has increased its export sales.

Mr Dyson said he had been forced to shift production to Malaysia because of soaring manufacturing costs in Britain, with direct labour costs doubling in ten years, partly because of the need to pay high wages in an area around Swindon with zero unemployment.

The shift overseas was also seen as a way of allowing more money to be spent on research and development.

In 2003, Dyson increased its research and development budget by 50 per cent and recruited 100 engineers.