Hoover is investing �1.25m in the design

However, the company had to be bailed out by the Candy group after a sales promotion offering free flights went wrong in the early 1990s.

It is estimated that the campaign cost the company some �30m.

Hoover had been reviewing the location of the plant which will build the new cleaner in the face of tough market conditions and competition from the likes of Dyson.

The company announced on Wednesday that the Cambuslang plant near Glasgow had won the deal.

It said that countries where production costs were lower, including Portugal, had more difficulty competing with Cambuslang.

The Scottish factory will be adopting new methods of assembly which will lead to improved productivity levels.

The Cambuslang facility has to be congratulated on holding its own against the company's many other sites around the world

Wendy Alexander Enterprise Minister

The new cleaner has been designed with 30% fewer parts than previous models, meaning a faster assembly time.

Scottish Enterprise Minister Wendy Alexander welcomed the announcement.

"The Hoover plant at Cambuslang has shown how Scottish manufacturers can beat the competition when they invest in skills and innovation," she said.

"As well as coping with shifting market and consumer demands the Cambuslang facility has to be congratulated on holding its own against the company's many other sites around the world.

"The announcement today shows that the Scottish operation can compete globally and is a ringing testament to the skills of the staff and management at the plant."