The honour was announced yesterday on the Queen's birthday and marks its major contribution to Britain's exports.

The awards are the UK's most prestigious accolades for business achievement and 150 firms and individuals have been honoured this year.

The firm, which is currently on the move from Pendle to a new complex at Simonstone, makes mechanical valves for tankers.

Fort Vale began in 1967, founded by Ted Fort. It is the third time Fort Vale has won a Queen's Award, with previous ones in 1981 and 1986.

Prime Minister Gordon Brown said: "Queen's Award winning companies are standard-bearers for the very best of British business. These firms embody the spirit of enterprise and innovation vital to the future of Britain's economy.

"Every one of this year's winning organisations has achieved outstanding success in its field. I congratulate them all."

Managing director Ian Wilson said: "We are very pleased to receive this prestigious award. Trading conditions have become considerably tougher in recent years, with unprecedented increases in the price of raw materials and energy costs.

"The company focuses on maintaining strong long-term relationships with our customers. Our in-house training programmes and extensive capital expenditure have helped us keep ahead of our competition. We plan to continue improvement in all areas of our operations.

"We are in the final stages of the move to the purpose-built manufacturing facility and office accommodation in Simonstone. In moving, we are adopting some of the latest manufacturing philosophies which will help us maintain our position as world leader in our market."

Founder Mr Fort, who is now chairman, received an OBE in 1987 for services to industry.

The move from Nelson to Simonstone is well under way. All machinery is now in place and fully operational and the majority of staff have moved. The new office block will be ready for occupation by the end of July, and the reception building completed by the end of September.