MALMESBURY-based manufacturer Dyson has cracked the American market after being named the country's number one manufacturer of vacuum cleaners.

In just over two years Dyson has become the number one player in the United States, with a market share of 20.7 per cent.

Volumes in the States have grown by over 350 per cent with 891,000 units sold in 2004.

The firm's millionaire inventor James Dyson said: "America is a notoriously difficult market to crack and I believe it is our technology, which is developed in Britain, that the Americans are buying.

"I hope our success will encourage the British Government and industry to place greater emphasis on research and development."

The figures were released this week as part of the company's results for 2004.

All in all it's been a fantastic year for Dyson, whose headquarters is at Tetbury Hill.

In 2002 the company axed 590 jobs in Malmesbury when it decided to relocate the manufacturing side of the business to Malaysia.

It is thought Dyson pays workers in the Far East as little as £1.50 per hour to do the same job.

At the time, workers spoke angrily about the move, although many were found other jobs within the company and others were given better than average redundancy packages.

Now, the company's worldwide headquarters in Malmesbury has 1,200 staff, a third of whom are employed on the research and development side of the business and another third work exclusively on new products.

As the production line is in Malaysia, the rest of the workforce concentrates on sales, marketing, administration and creative support.

Chief executive Martin McCourt, who has worked for Dyson for eight years, said the latest figures were "great news" for the company, which remains committed to Malmesbury.

He said the dramatic success of Dyson in the worldwide market was thanks to the time and money spent on research and development, which he hoped would become a template for other British industries.

Mr McCourt, who remained secretive about the new products Dyson is developing, said: "If you look at what happened last year our business grew by 50 per cent and our profits went up by 137 per cent. That is all being achieved on the back of our British designed products.

"In America the Dyson is the only vacuum cleaner on the market with no loss of suction. They've gone for it in a big way."

Mr McCourt said the growth in profits was not down to cheap labour in Malaysia, but because of reinvestment in the company and making one million more vacuum cleaners than the previous year.

Another major highlight was the doubling of profits for the second year in a row from £43.1 million in 2003 to £102.9 million in 2004.

Three new machines were also introduced last year and the revolutionary Dyson Digital Motor was launched.

And James Dyson announced he would be investing £50 million on research and development this year £10 million more than in 2004.

The company employs 1,200 people in the UK, including 350 scientists and engineers at its Research Design and Development Centre.

One of the secret assignments the inventor has been working on is a clever vacuum cleaner that can order its own spare parts when it has broken down.

The machine, which will be on sale in the UK soon, lets the owner know when it needs replacement parts and then transmits a message to engineers giving details on what is wrong and what new part it needs.

Research and development has always played an important role in the Dyson empire.

Back in 1993, when the production of what is now the world's best-selling vacuum cleaner was in its infancy, entrepreneur James Dyson set up his first research centre and factory at Bumpers Farm in Chippenham.

In May of the same year he launched the first ever Dyson-branded vacuum, the DC01, which cost £200.

As the world became gripped by the concept of a new bagless vacuum, Dyson decided to move to a bigger research and development centre in Malmesbury in August 1995.

Mr Dyson said: "Without increased investment in research and development, we wouldn't be able to take on huge markets like the US or stay ahead of our competitors."