The plant dates back almost 60 years

The company announced in October plans to end production at its Scottish base with the loss of 350 jobs.

The 60 posts, which would have gone to Wales, will remain at Cambuslang along with 90 sales and engineering jobs.

The deal follows a campaign by workers and union conveners who have pressed for some production work to be retained in Scotland.

Enterprise Minister Jim Wallace welcomed the decision to retain the jobs in Scotland, describing it as a vote of confidence in the workers.

He also praised the firm for the "genuine manner" in which it had consulted the Scottish Executive and Scottish Development International since the announcement.

Ties 'valued'

"In my discussions with the Italian owners of Hoover it was clear that they value the ties they have with Cambuslang," Mr Wallace said.

"They will now retain both R&D and manufacturing at the Cambuslang plant.

"While they have manufacturing at Cambuslang then there is reason to hope that there is the possibility of the plant having a longer term future.

"If the company had gone ahead with their plans to pull manufacturing out of Cambuslang then I don't think there would have been a realistic hope of them returning.

"While they retain manufacturing in Scotland there is always hope that they will stay."

The change of heart came after Hoover agreed a deal with Mr Wallace concerning the �1.7m government grant handed to the firm two years ago.