Fresh investment in Bute Fabrics is set to add to the success of the award winning firm.

Management at Bute Fabrics, manufacturers of quality fabric for the commercial upholstery market, are ploughing £450,000 (pounds) into the business in order to produce new textile ranges and further improve response times to customer orders. Its programme of new textile releases and collaborations with top seating designers and manufacturers has created additional jobs at the company's Rothesay plant. This latest investment includes the purchase of two new state of the art looms and special IT equipment.

The venture is being supported by the local enterprise company, Argyll and the Islands Enterprise (AIE), part of the Highlands and Islands Enterprise (HIE) network, with an investment package totalling £37,000 (pounds). Bute Fabrics, which was established in 1977, has also been awarded an EU Research and Development Grant worth £37,000 (pounds).

The strong pound and stiff competition from overseas has hampered Scotland's textile industry over the last few years and companies have had to adapt to the changing market place. Bute Fabric's response has been to invest heavily in research and development by spending in excess of half a million pounds since last year. In recent years sales have increased by 93% and employment at the plant by 28%, despite difficult trading conditions.

Managing director of Bute Fabrics, Colin Drummond said: "It has been an extraordinary 12 months for Bute Fabrics, representing the fifth year in succession that we have achieved double digit increases in sales. Bute Fabrics is only too aware that the limiting factor in how far and how fast it can develop is cash, but our non-executive Chairman Johnny Bute and AIE have been extremely supportive of the progress achieved, especially in the context of island regeneration."

Ken Abernethy, Chief Executive of AIE said: "Bute Fabrics is a key employer in Rothesay, and despite adverse trading conditions, has made significant progress. This is a unique manufacturing business and one that is increasingly recognised nationally and internationally for the quality of its design and production. This fresh investment will help further strengthen the company's long term prospects."