By Giancarlo Rinaldi South of Scotland reporter, BBC Scotland

There are estimated to be 450 textile companies across Scotland, with the majority still located in the Borders

The Scottish textiles industry is worth more than �1bn a year to the nation's economy.

It has been affected in recent times by job cuts, factory closures and a sharp increase in foreign competition.

Yet a survey has shown growing optimism for the future of an industry which employs about 17,000 people.

So what have been the highs and lows for the trade in recent times?

In August an Iranian cashmere company announced its plans to open a new plant in the Scottish Borders.

Jahan Cashmere is set to take over the former Border Electronics site at Pinnaclehill in Kelso.

The move - backed by Scottish Enterprise and the Scottish Executive - is due to create 20 jobs initially, but this could go up to 60 when in full production.

The company said that the Borders' reputation in the industry was a key factor in selecting a UK site.

Borders MP Michael Moore met management of a Scottish textile firm after it confirmed it had held takeover talks with a Chinese cashmere company.

Michael Moore held discussions with Mike Hartley, the executive chairman of Dawson International, in August.

The firm owns yarn spinners Todd and Duncan in Kinross and Barrie knitwear makers at Hawick in the Borders.

Mr Moore said it was vital that staff were kept "informed as fully as possible as matters progress".

Dawson International had confirmed there had been "very preliminary discussions" with a potential buyer, the Lingwu Zhongyin Cashmere Company.

In January, a Hawick knitwear firm pinned its hopes of a major breakthrough in the golf wear market on Colin Montgomerie.

Peter Scott and Company clinched a deal to see the Scottish golfer wear its cashmere sweater and shirts on the European Tour.

Managing director Nick Bannerman said the firm was keen to raise its profile across Europe, US and Japan.

It is hoped the deal could help double the company's golf wear income to 50% of its turnover.

A large range of firms across the Scottish Borders and beyond have cut back job numbers over the past 24 months.

Peebles firm Robert Noble announced 20 losses in July due to the changing market place.

In September last year Johnstons of Elgin shed 10 jobs at its Hawick site, blaming fuel costs and international competition.

Just a week earlier 23 workers lost their posts when MA Cashmere in Innerleithen collapsed.

Also in 2006, Hawick Cashmere announced plans to shed more than 40 posts as it closed its Eyemouth plant.

Fellow cashmere producer John Laing, of Hawick, cut more than 50 jobs after it went into receivership in January that year.

These were just some of a number of cutbacks announced across the industry.

A new scheme was launched in November last year aiming to allow Borders textile firms to fight back on the international market.

The region had been hit by a string of cutbacks - often blamed on overseas competition.

The Textiles Lab initiative hoped to get Scottish companies to work together in order to develop new products and increase their business.

The move followed a �15,000 pilot project which ended up producing more than �100,000 investment in the sector.