Highgrove Beds in Liversedge has ceased production after eight members of its factory staff tested positive for coronavirus.
Kirklees Council, the Health and Safety Executive and Public Health England are now working with the factory.
It comes after outbreaks at the Kober meat factory in Cleckheaton and Dura Beds in Batley.
A statement from Kirklees Council this afternoon said: “Highgrove Beds – which was inspected last week by Kirklees Council and presented high standards of infection control procedures and practices – have taken the decision to cease production as a safety precaution and will reopen when safe to do so.
“All staff are now to be offered tests, with a Mobile Testing Unit being set up on-site.
“The company are also working closely with Kirklees Council and Public Health England so those who have tested positive can be followed up by the NHS Test and Trace programme and self-isolate.
“While the risk to residents from this outbreak is very low, everyone in Kirklees should continue to socially distance, wash hands regularly for 20 seconds with soap and water and get tested if they have symptoms.
“You can find all the latest advice on staying safe during the pandemic here.”
Councillor David Hall, Conservative ward councillor for Liversedge and Gomersal, said: “It’s encouraging that the Council, Public Health England and the employer are working together to do the right thing on behalf of the residents of Kirklees.
“It’s always going to be a concern if you do get an outbreak, but I think Kirklees, like every other local authority, should be prepared over the next few months to see quite a lot of isolated outbreaks.”
He urged people to continue to follow guidelines around handwashing and social distancing.
His fellow ward councillor Michelle Grainger-Mead added: “It is concerning that we are seeing more and more of these localised outbreaks, particularly in the Kirklees area.
“However, it is absolutely imperative at this stage that all businesses keep reporting these incidents and work closely with Council and Government officials and follow their recommended guidelines.
“The last thing we want is for outbreaks of this kind, not to be reported and for the spread of the virus to end up in the community at large.
“Thankfully due to the honesty and integrity of our local businesses in Kirklees we are managing to keep the virus at bay and doing everything possible to keep it that way.”
She added: “I would just urge the local community to be vigilant, follow the social distancing rules and keep reporting these outbreaks.
“One point that is quite concerning is that many of the younger generation seem to think that the virus has gone away and they are immune to it.
“It hasn’t and they are not. Young people even though they less likely to have symptoms of Covid-19, can still carry the virus to their elderly and vulnerable relatives.
“The social distancing rules are there for us all to follow and I would urge everyone to keep this in mind whilst going around our community.”