The investment should safeguard jobs at the electronics firm

The award to Plexus in Kelso is the second-largest made under the regional selective assistance scheme for the last quarter of 2007.

The grant will help to create 39 new jobs at the Pinnaclehill site.

The company employs more than 300 workers at its site in the Borders and it also has a plant at Livingston in West Lothian.

It is not the first time the company has received Scottish Government support - back in 2000 the company was given �1m.

It also received a grant towards 19 new specialist design jobs in Livingston in March last year.

This latest grant is part of more than �5.4m announced nationwide.

A total of 22 businesses in Scotland have accepted grants linked with planned capital expenditure of more than �16.2m.

Willie MacKinnon, UK managing director at Plexus, said: "Our manufacturing site in Kelso is strategic to our future European growth strategy and we are constantly investing in new production technologies for the benefit of our customers.

"We are delighted to accept the grant from Scottish Enterprise, which gives us the potential to expand the Kelso facility further, as and when our business demands it."