A NEW multi-million pound contract has given a welcome boost to a trouble-hit local company.

Watson Steel at Lostock, which announced 67 job losses in February, is to build a 34-storey office building at Canary Wharf in London's Docklands area.

The major contract for Canary Wharf Contractors involves the HQ3 Tower at Heron's Quay.

It covers the supply and erection of 5,000 tonnes of structural steelwork plus the design and installation of 70,000 square metres of metal floor decking.

work is due to start in June, 2001.

Watson Steel is part of the international AMEC group.

Director and General Manager John Rawlinson said today: "The HQ3 tower is a fast track job which Watson Steel is well suited to deliver.

"Canary Wharf is well known to us as four years ago we constructed the 22-storey Citibank Headquarters.

"The order is particularly important to Watson as it provides immediate additional workload for the Bolton site."

The order comes as a relief to management and workers at Watson, which has suffered significant financial losses over the last two years.

Restructuring moves, which started with the closure of the Watson factory in Bristol, also included 40 voluntary and 27 compulsory job losses at Lostock.

The total workforce is currently 340.

A Watsons spokesman said today: "This is welcome news. It will consolidate our existing workforce, but will not lead to recruitment."

The factory is hoping that more orders will follow.

"There are a lot of irons in the fire," the spokesman added.