29 jobs have been retained at one of Argyll's largest creameries with the announcement of a £500,000 (pounds) development package.

The investment is being made at the 80 year old Campbeltown creamery to replace outdated equipment and processing methods so it can effectively compete in the modern market.

The upgrade is being assisted by Argyll and the Islands Enterprise (AIE), part of the Highlands and Islands Enterprise network with a package worth £100,000 (pounds). Matching KONVER II European funding, which aids communities affected by the withdrawal of military bases, has also been levered in by AIE.

Chief executive of AIE Ken Abernethy said: "This development is a welcome announcement that supports the future of a large number of jobs in one of Argyll's most fragile areas and the future of a quality local product."

The creamery, on the Kintyre peninsula is 80 per cent owned by the Paisley based farmers co-operative Scottish Milk.

Cheese operations manager for Scottish Milk, Mathew Glover said: "This investment will modernise large parts of our production process increasing efficiency on the factory floor.

"A new weighing and wrapping machine for 20kg blocks, replacing an out-dated wooden slat system, will be installed raising the overall quality of the manufacturing process and improving the shape of the cheese block before it is cut into portions for customers.

"In addition we will also be upgrading the stores which hold up to 1500 tonnes of cheddar and also intend to rebuild the plant's boiler house. Work is due to begin in August. "

Campbeltown Creamery opened in 1919 producing a variety of dairy products from butter to condensed milk. It began manufacturing cheese in 1974 and was bought over by Scottish Milk in May 1997.

The creamery produces a wide range of well known branded cheddars from 'Mull of Kintyre' and the famous black-waxed truckle 'Mull of Kintyre' as well as the Harrods' green wax truckles, Safeway's 'Scottish Reserve' and Sainsburys' 'Mull of Kintyre.'