IBM workers in Greenock have breathed a sigh of relief with news that none will lose their jobs - despite the company announcing they are ending all manufacturing in Greenock.

Three thousand workers - 1,200 of them sub-contractors - will stay with IBM at Spango Valley to work in 17 different service departments, including the four call centres, the company announced yesterday.

And the remaining 640 involved in manufacturing computer servers and laptops will stay at Spango Valley but transfer on 17 February to Sanmina/SCI (SSCI) under terms and conditions similar to their current deals. Pensions will be part of consultations over the next six weeks.

In the most significant development at the plant since IBM came to Greenock 51 years ago, multi-national computer maker SSCI of California are buying the Spango Valley site"s manufacturing buildings and equipment for an undisclosed multi-million pound sum in a three-year deal that IBM expects will be extended.

And the reaction from workers was generally one of relief that, despite a great deal of speculation, they still have a job in Greenock.

Eighty IBM workers were transferred to SSCI at Faulds Park, Gourock last January, and they may be brought back to Spango Valley.

The Gourock plant run by Fullarton Computer Industries was building IBM computers for SSCI, but announced on Monday that the plant was closing with the loss of all 500 jobs.

Fullarton said in a letter to their staff that the closure decision was taken 'as a result of a communication from SSCI'.

Commenting on SSCI"s move into Spango Valley, an IBM spokesman said: 'Making computers is no longer IBM"s core business. IBM are now a computer solutions business.

'Making computers is SSCI"s core business - and they are making a major investment in Inverclyde.

'This move is in step with IBM"s global initiative to transform its supply chain to support "on-demand" business operations.

'It is intended to make IBM"s supply chain more resilient, responsive and flexible. It is the biggest change in IBM"s history.' Although no sum has been released for the purchase of the Greenock site assets, IBM have said that SSCI have paid a total of £2.4 billion for buying them as well as leasing sites in Raleigh, United States and at Guadalajara Mexico, where hundreds are also being transferred to SSCI.

The IBM spokesman said that SSCI hope to bring in other contracts and jobs to Spango Valley because they will not be restricted to doing work for IBM.

'Sanmina are demonstrating a commitment to Inverclyde by investing here,' he said.

Charlie Morrison, vice-president IBM Greenock, said: 'This will improve IBM"s overall supply chain efficiency in a growing area of our business. This is a positive move for everyone.

'There are no redundancies. To the contrary, IBM and SSCI both have a growth agenda on the Greenock campus.

'The IBM team at Greenock can dedicate itself to growing revenue for IBM with its wide portfolio of hardware, software and services solutions businesses.' Mr Morrison added: 'SSCI is a world-class company who are now investing seriously in Scotland.

'With its global scale, it will bring improved cost and efficiency, plus allow the new Greenock SSCI team to focus on developing their manufacturing and logistics businesses.' The move was described as 'an exciting opportunity' by Bill Milliken, IBM"s eServer integrated supply chain manager, who will become vice-president of manufacturing operations and plant manager for SSCI in Greenock.

He said: 'The transition to SSCI means we maintain manufacturing in Inverclyde and provide continuity of employment.

'This is an outstanding workforce who possess some of the best manufacturing skills available, and I have every confidence that we will meet our customers" expectations and together build a successful future.'