A BLACKBURN firm which boasts a string of blue-chip companies as clients will this week unveil a £5million new warehouse expected to help create 260 new jobs.

MDA, which distributes promotional goods to retail and leisure companies on behalf of firms such as breweries, will welcome Blackburn MP Jack Straw to its new premises, on the site of the Cardwell Mill, Mill Hill, on Friday.

The company - which also stores pallets - has accessed money from the North West Development Agency to help fund the development, on the grounds it is creating new jobs.

It will enable the firm to expand its business - which includes contracts for brands such as Stella Artois, Warburtons, Pernod and Cadbury.

Managing director of MDA, Ian Stead, said, "With Cardwell Mill, we have created probably the largest single stockholding capacity anywhere in our industry.

"With a robust plan for future growth, MDA is looking forward to some exciting times ahead and we are delighted to announce this investment and to be creating some valuable new jobs for Blackburn."

MDA was founded in 1987 in Blackpool and then moved to Blackburn, establishing itself as the UK's leading 'point of sale management company'.

That means the company distributes everything from beer mats to golf umbrellas for its clients, who also include Monarch Airlines, Whitbread and Punch Taverns.

MDA had 140 staff before expansion plan began. Within two years it expects to employ around 400 people.

The new warehouse is 3.7million cubic metres and dominates the skyline.

Head of logistics Andy Vallis added: ""We handled more than 1.5 million orders last year and items of all shapes and sizes - everything from balloons, glasses, posters and cuddly toys to branded garden furniture for pubs.

"Good warehousing is vital to our provision of the highest quality service to our customers, and for the efficient management of varied and challenging high volume point-of-sale campaigns."