BLACKBURN brewer Thwaites is celebrating the biggest deal in the company's history after winning a multi-million-pound contract to make beers for the American giant Coors.

The contract - which will see Thwaites produce up to 30 million pints a year for Coors - will secure the future of brewing in Blackburn and create about 12 new jobs.

It is understood that a new £1million packaging plant will be built at the brewery to cope with the order.

The news was welcomed today by Saj Butt, President of the East Lancashire Chamber of Commerce. "This is fantastic news both for the company and Blackburn," he said. "East Lancashire needs investment and deals like this help to underpin the local economy."

Thwaites managing director Paul Baker said the deal firmly established Blackburn's largest private employer as a major player within the global brewing industry.

"It represents the biggest contract deal in our 197-year history," he said. "We are delighted."

Mr Baker said the deal involved Thwaites brewing some of Coors Brewers regional ale brands under contract, continuing to stock Carling lager and agreeing to sell Coors Fine Light Beer in its pubs.

Thwaites, which employs more than 1,000 people, is now the seventh largest brewery in the UK.

The Coors Brewing Company is the worlds eighth largest brewer and is based in Golden, Colorado in the US Rocky Mountains. Its UK subsidiary, Coors Brewers, is the UK's second largest brewer and brews Carling Lager, Grolsch and Coors Fine Light Beer.

Mr Baker believes the partnership with Coors underlines the progress made over recent years.

"We are fortunate to have a very talented and committed workforce," he said. "Even during what has proved a lean time for brewing in Britain, we have not wavered from our policies and that commitment continues to pay dividends.

"We have the capability to produce high-quality beers and the deal with Coors means we will be able to operate at the top end of our capacity."