It has been confirmed that eight members of staff at High Grove Beds in Liversedge have tested positive for covid 19.
It follows the previous outbreak at Batley based- Dura Beds.
A statement on behalf of Kirklees Council, Public Health England and High Grove Beds said: "Kirklees Council, the Health and Safety Executive and Public Health England are working with High Grove Beds after eight members of its factory staff have to date, tested positive for coronavirus.
"High Grove Beds - which was inspected last week by Kirklees Council and presented high standards of infection control procedures and practices - has 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.
The two bed factories were hit following an earlier outbreak at Kober Ltd, a food processing plant, near Cleckheaton.