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Wednesday, 10 April, 2002, 13:25 GMT 14:25 UK
Scots plant clinches Hoover deal
Hoover factory
The news will help secure the factory's future
A Scottish plant has won a contract to build a new generation of vacuum cleaners, safeguarding 350 jobs.

The Hoover factory in Cambuslang fought off competition from a sister plant in Portugal to clinch the crucial deal.

About 1.25m is to be invested in the design and development of the new cleaner, which will be launched in September.

The Cambuslang plant has been manufacturing Hoovers for 55 years and employed 5,000 people during the 1970s.

Hoover logo
Hoover is investing 1.25m in the design
However, the company had to be bailed out by the Candy group after a sales promotion offering free flights went wrong in the early 1990s.

It is estimated that the campaign cost the company some 30m.

Hoover had been reviewing the location of the plant which will build the new cleaner in the face of tough market conditions and competition from the likes of Dyson.

The company announced on Wednesday that the Cambuslang plant near Glasgow had won the deal.

It said that countries where production costs were lower, including Portugal, had more difficulty competing with Cambuslang.

The Scottish factory will be adopting new methods of assembly which will lead to improved productivity levels.


The Cambuslang facility has to be congratulated on holding its own against the company's many other sites around the world

Wendy Alexander
Enterprise Minister
The new cleaner has been designed with 30% fewer parts than previous models, meaning a faster assembly time.

Scottish Enterprise Minister Wendy Alexander welcomed the announcement.

"The Hoover plant at Cambuslang has shown how Scottish manufacturers can beat the competition when they invest in skills and innovation," she said.

"As well as coping with shifting market and consumer demands the Cambuslang facility has to be congratulated on holding its own against the company's many other sites around the world.

"The announcement today shows that the Scottish operation can compete globally and is a ringing testament to the skills of the staff and management at the plant."

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 ON THIS STORY
Gillian Marles reports
"The factory beat off competition from abroad"
See also:

05 Feb 02 | Business
Dyson to move to Far East
03 May 01 | Sci/Tech
Carpets harbour 'toxic dust'
12 Jan 01 | Business
Hoover wins court battle with Dyson
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