AN agreement to secure the immediate future of part of a threatened workforce when one of East Lancashire's biggest factories closes later this year was signed yesterday.

Bosses at Leoni Wiring Systems -- formerly Lucas Rists -- at Pickup Street, Accrington, announced the closure of the factory in June saying that all 550 jobs would be lost when production finishes in November.

But negotiations with bosses involving Hyndburn Council, MP Greg Pope and the GMB union has led to some 60 jobs being saved for an initial period of at least 18 months.

The company will transfer part of its production to a smaller site on the Altham Industrial Estate after the council offered them a relocation grant to cover the costs of rent and business rates.

The deal runs for 18 months and Leoni have the option to extend the tenancy after that time.

Council leader Peter Britcliffe said: "I am delighted that we have been able to sign this deal with Leoni. It follows lots of hard work and lots of discussions. "As leader of this council I am delighted that a multi-national company will remain in Hyndburn and I hope that in 18 months time when this deal runs out Leoni will have come to love Hyndburn and will want to stay here.

"Obviously there is great sadness in the borough with the jobs that are being lost."

Head of human resources at Leoni Richard Tait said: "Leoni Wiring UK Limited wish to thank Hyndburn Council for their innovative solution and the GMB union for working closely with both the company and council resulting in this announcement. There is also potential for expanding in the future."

Graham Coxon of the GMB union said: "We are pleased that this deal is signed and that we have saved 60 jobs but I am still angry at what has happened and that anger will never go away.

"My heart is still with the 500 who are going to be without work this Christmas."

The new site is set to be open in November before the main Pickup Street site closes and the 60 operators have already been selected.

The first job casualties are due to take affect at the factory starting from tomorrow.