Russ Berrie, founder and chairman of the gift company bearing his name, flew in from his American base to formally open the firm's new £15m European headquarters at Hounsdown, Totton, yesterday.

His European company moved this week just four miles, having outgrown its former home at Nursling. The new building is equivalent to the size of three football pitches, and was opened by Lady Romsey by cutting a ribbon.

The company manufactures and sells more than 6,000 gift products and is best known for its teddy bears.

It set up its European subsidiary in Southampton in 1980. The European operation now employs 300 people and exports its products all over the world.

Relocation to the new Hounsdown business Park follows an extremely buoyant period for the company, with its Southampton operation having increased business consistently year on year for the past seven years, setting the firm well on track to becoming the largest gift company in Europe.

Managing director Chris Robinson said: "We have been looking to relocate our new headquarters for the past five years but we also feel a tremendous commitment to our staff and did not want to lose any of them as a result of the move.

"I am delighted to say that we have managed to retain every single member of staff.

"What's more, they will be able to enjoy much better working conditions thanks to new facilities, including a new-style staff canteen.

"These larger facilities also provide more than double the storage at our previous premises."