TVR Engineering in Blackpool had previously shown little appetite for a formal relationship with unions but now the Russian tycoon Nikolai Smolensky looks set to hold talks with one of the toughest negotiators in the business - T&G general secretary Tony Woodley.

The Central Arbitration Committee has given the go-ahead to the union to move ahead with the next stage, a ballot of the workforce.

"We are delighted with this result and look forward to the future with TVR," said Mr Woodley. More than 300 staff who hand-build about 800 high-performance cars a year would be covered by the recognition agreement.

Mr Smolensky bought TVR from Peter Wheeler for £15m last month. The former chairman of Russian bank OVK, who is only 24, said he wanted TVR to become a global player. He has rejected any large-scale restructuring of the business although this has not stopped rumours that some production could be switched back to the low-cost land of the Lada.

But a union spokesman said: "I don't think he [Smolensky] would have gone to Blackpool and discussed minute details such as the canteen facilities if he was planning to do that [transfer work to Russia]."

Mr Smolensky appears to have bought the company for much the same reason as countryman Roman Abramovich bought Chelsea - he liked the brand.