BOLTON'S most famous steel company has been sold to a North Yorkshire firm in a multi-million pound deal.

Talks between bosses of Watson Steel and S R Structures Ltd have resulted in a deal being agreed last night.

Bosses at the huge Watson Steel factory said it would secure the jobs of the firm's 450 workers.

And the news was due to be broken officially to the workforce later today.

The deal has been agreed just five months after a proposed takeover of the company by Bury firm William Hare collapsed.

John Rawlinson, director and general manager of Watson Steel, said the company had become a "non-core" business for its parent company AMEC.

He said: "It will better achieve it's full potential under different ownership."

Watson Steel, based as Lostock, is one of the most famous steel companies in the world.

It has been involved in the construction of some of Britain's most prestigious landmarks including the futuristic Reebok Stadium, the Big One rollercoaster at Blackpool and the controversial Millennium Dome.

Its sale has come as little surprise to industry watchers who noted the willingness of AMEC to listen to offers.

Like William Hare, it is understood that the new buyers are intent on building on Watson's expertise and will look to turn the company around financially.

Mr Rawlinson said: "Watson Steel has a significant reputation for delivering complex structural steel projects and we believe it will move forward and prosper as part of a larger structural steel group."

Over the last two years, Watson has suffered significant financial losses and it announced last autumn that it was closing its Bristol factory at a cost of 90 jobs.

In January, the company spoke to workers about plans to change shift patterns and concerned workers -- suffering from a lack of overtime -- contacted the BEN to express their worries for the future.

S R Structures, based at Dalton, near Thirsk, North Yorkshire, is a wholly-owned subsidiary of Severfield-Rowen plc, a major player in the structural steel industry.

It was founded in 1979 and its shares are listed on the London Stock Exchange. It designs, manufactures and erects structural steelwork and operates from two sites in Dalton and Sutton-in-Ashfield, Nottinghamshire.

Mr Rawlinson said: "The buyers will be looking to upgrade and develop the Watson Steel business."