Craven bed springs manufacturer Leggett and Platt has announced an exclusive supply agreement with local bed maker Silentnight Beds in a deal that could be worth up to £4 million.

The ten-year agreement, which includes a major investment programme for L&P Springs, is for the supply of pocket springs to both Barnoldswick-based Silentnight and its sister company, Sealy, in Aspatria.

Leggett and Platt will supply the pocket spring units from a purpose-built state-of-the-art warehouse, which it is planning to build on its present site at Ravenscroft Way, Barnoldswick. New jobs are expected to be created.

Anthony Joyce, managing director of Leggett and Platt UK Ltd, said: “We had to beat off competition for the contract, including bids from German and Turkish companies. But what we have achieved is a major step forward and is a vote of confidence in UK manufacturing and our continued presence in Barnoldswick.

“We are hopeful we will be able to continue our expansion plans in Barnoldswick and develop the current site to meet the demand requirements of Silentnight.

“Securing investment in the current economic climate is not easy.”

The deal includes an initial investment of £2 million, which includes Leggett and Platt purchasing production equipment from Silentnight’s Batley site – which is due to close next month – and a signing-on fee with Silentnight.

Mr Joyce said Leggett and Platt would then hope to use the capital generated from the sale of land to Tesco to upgrade its 120-year-old warehouse, a former mill.

Liberty Properties has submitted plans to build a new Tesco superstore on part of the L&P Springs site, which could create 175 jobs.

However, it has yet to be considered by Pendle Council’s West Craven Area Committee.

Mr Joyce said approval of the Tesco plan was very important and it would be a “major setback” for Leggett and Platt if it was turned down.

And, while he could not say how many jobs would be created by the Silentnight agreement, Mr Joyce said they would be industrial and would complement any jobs on offer at Tesco.

Simon Hoare, a consultant for Liberty Properties, said: “The Tesco proposal should be seen as enabling development. Currently 80 per cent of the retail spend of customers living in the area is spent outside the town, predominantly in Skipton but also Colne as well.”