A CAR fabrics firm has bucked East Lancashire's economic gloom with news that more than 130 jobs are to be reprieved.

Two months ago Viktor Achter announced it was planning to shed 169 workers from its Billington Road site in Burnley because of the crisis at Rover and difficulties in the car industry in general.

But since then the firm has secured new contracts, the situation regarding Rover -- which was the firm's major customer -- is far clearer after its takeover by the Phoenix Consortium, and changes have been introduced across the factory to make it more efficient.

Now Viktor Achter has decided it doesn't need to make any of its 600-strong workforce compulsorily redundant.

Around 30 applications for voluntary redundancy from staff have been accepted.

The news is a major boost to East Lancashire's economy after more than a week of heavy job loss announcements. Under employment law the firm had to give three months notice of its plans to cut jobs and at the time it said it would try and reduce the numbers involved.

"We've made a number of changes to the way the business operates," said Dave Salmon, human resources manager. "We've also won new work off existing customers. The situation regarding Phoenix is also far clearer than it looked when we announced the possible redundancies.

"We're obviously delighted that we will not have to have any compulsory redundancies at all."

Mr Salmon also paid tribute to the workforce's response to the companies situation in recent weeks.

"Obviously it has been a worrying time for them and we're pleased we could give them some good news."

Initially workers in the sewing department were told that up to 100 people may have to go out of the 300 strong workforce.

The firm employs a further 300 producing components for seats and manufacturing seat fabrics.

Around 25 per cent of the factory's production used to be destined for Rover cars although it also supplies most of the other main manufacturers.