ROSS'S Pickles are to be produced outside of the North-East for the first time since 1918 after the stricken company's assets were bought by a rival pickle firm.

Ross's, based in Newcastle, collapsed last week after what was blamed on excessive pressure of meeting supply demands from big-name clients such as Tesco and Aldi.

It was forced to call in administrators PricewaterhouseCoopers (PwC) and announced what was described as "significant" job losses.

But last night, North Yorkshire company Greencore Grocery - the UK's largest producer of prime pickles - struck a deal to buy Ross's stock and production equipment, as well as rights to the famous Ross brand.

The deal will also involve the transfer of manufacturing from Ross's site in Newburn to Greencore's site in Selby, which employs 600 people.

Last night, a spokesman for Greencore said the deal was being concluded as soon as possible so Ross's customers would not have any disruption to their supply.

"Although Greencore Grocery has expanded to become a leading supplier of cooking sauces and other bottled recipe products, it remains the UK's largest producer of prime pickles, to which the Ross business will be complementary," he said.

Ross's Pickles has been operating in the region for almost 90 years, and its demise was described as being "very sad".

Patrick Wood, Greencore's managing director, said: "The pickle sector has been suffering from substantially higher input costs, particularly of late in respect of packaging and vegetable prices, and sadly it has become extremely difficult for smaller producers, such as James Ross, to survive in this environment.

"We are moving quickly to ensure continuity of supply to all James Ross's customers."

Ross's, which is predicted to have a full-year turnover of £1m - almost collapsed two-and-a-half years ago, when £2m of business was wiped out in an afternoon when Morrisons acquired Safeway.

In 2004, company turnover fell to a low of £170,000.

However, Ross's fought to revive the brand and its products, and launched its Gourmet, World and Posh ranges.