A Bolton textile firm has secured a partnership agreement with a company based in Lithuania.

Shiloh Spinners Ltd of Swan Lane Mill, Higher Swan Lane, says the deal with A B Trinyciai will allow the company to retain business which would otherwise be lost to low cost imports.

Chairman Roderick Murray said: "The production from A B Trinyciai will be managed by Shiloh Spinners Ltd and will be complementary to that manufactured in the UK which will now focus upon added value, technically-demanding yarns for an ever-discerning customer base."

Shiloh says the continued strength of sterling and moves by retailers to secure ever-lower cost products have created unprecedented market conditions.

The company believes the strategy of investing directly in an overseas manufacturing plant will secure a regular supply of high quality yarn -- a prerequisite for the UK market which will allow Shiloh Spinners Ltd to regain market share.

Shiloh currently employs about 250 people in Bolton who have been told there are no plans to make changes as a result of the new deal.

Work produced in Lithuania will come back to the UK for distribution.

"This is us trying to get back some of the business which has been lost in the past," Mr Murray said.