One of the UK's largest personal computer companies is to switch part of its assembly base from Asia to Scotland.

Tiny Computers has announced a �40m contract building PCs for the UK market will move from China to Prestwick in Ayrshire.

Fullarton Computer Industries will take on the work in a move which it hopes will help see it through the current global downturn in the electronics market.

Tiny's plan is a boost for Scotland's electronics sector which has been hit with thousands of job losses this year.

Fullarton wil assemble PCs for Tiny

Allan McLuckie, the managing director of Fullarton CI, said the work was very good news.

His company has seen its own ups and downs in recent times.

In February last year it announced the creation of about 700 jobs, but then in November announced cuts of about 350.

Tiny is convinced the move makes economic sense.

Spokesman Andrew Walwyn said: "We will have huge savings in air freight.

"We're talking tens of millions a year on that side of things.

"Also we see the benefit to Scotland that means more jobs here, but also to us, delivery is faster to the customer."

Jobs hope

The �40m contract is for assembling computers for Tiny, and will not bring any new jobs initially.

However, Fullarton is also talking to Tiny about making as well as assembling for the UK market.

A manufacturing contract could see the firm creating more jobs by the middle of next year.

The news has come at a crucial time for Fullarton - where unions representatives had been expecting redundancies.

Tiny's arrival in Scotland should also boost confidence in the manufacturing sector - now officially in recession.