Johnstons of Elgin is investing in tourism with the £1m expansion of its mill at Hawick in the Scottish Borders.
The textile firm will create a strong focus on tourism with a new visitor centre, cafe and retail outlet at Eastfield Mills.
James Sugden, a director with the firm, said it would initially create 15 new jobs but also safeguard the 250 staff already working at the facility.
Mr Sugden told the BBC: “I see a bright future for manufacturing of luxury textiles in Scotland and I hope this investment, along with further ongoing investment in new advanced knitting machines later this year, will mark a new period of progress for us and indeed for the industry of Hawick.
“Government is beginning to take seriously the contribution we make.”
He added the company wanted to emphasise Hawick’s claims to be the “home of cashmere”.
South of Scotland MSP Paul Wheelhouse described it as “great news for the town as a whole”.
“The existing employees will be pleased their jobs have been safeguarded and the news of 15 new jobs initially will go a long way in allaying fears for the future of Hawick,” he said.
Borders MP Michael Moore said the investment showed the industry had an “extremely bright future. Textiles firms like Johnstons of Elgin are innovating, investing and creating jobs in the Borders and this is welcome news for local people,” he added.
Last year Johnstons of Elgin recorded a turnover of £50m. It employs around 750 staff between its Hawick and Elgin sites.