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Pottery giant Churchill China has taken over the full ownership of ceramics materials manufacturer Furlong Mills – after buying the remaining shares from Portmeirion.

The business has paid £3.3 million to acquire a further 44.4 per cent of Furlong Mills from the fellow Stoke-on-Trent pottery firm.

The acquisition – which has been funded from existing cash resources – means Churchill now has full ownership of Furlong Millls, in Stoke-on-Trent.

Prior to the takeover, Churchill owned 55.6 per cent of share capital reflecting shares held for many years as well as shares purchased from collapsed pottery company Dudson earlier this year.

In a statement to the London Stock Exchange, Churchill China said: "Churchill’s strategy continues to be to offer innovative, high performance and technically differentiated ceramic products to hospitality markets worldwide.

"We expect that full ownership of Furlong Mills, with its substantial intellectual property, will facilitate further material, process and product innovation in the medium and long term and will contribute to the continued development of the company."

Stoke-based Portmeirion – which owns brands including Spode, Royal Worcester and Wax Lyrical – will continue to source its raw materials from Furlong Mills under a long term supply agreement.

Dick Steele, non-executive chairman at Portmeirion, said: "Our focus remains on growth, profitability, dividends and return on capital employed.