WASHINGTON – Wal-Mart has agreed to a new contract with the C.F. Hathaway Co. of Waterville, which will extend production at the facility until August and which may buy the shirt-maker enough time to negotiate other deals that could save the company.

The deal announced Thursday ends six weeks of negotiations between Hathaway and Wal-Mart executives.

“This is a step in the right direction that will keep the company open for two full months – time that will offer the chance for company officials to negotiate new contracts that could keep production going, and save the company,” said U.S. Sen. Olympia J. Snowe, who has been working with officials from both companies since March.