More than 180 jobs were lost with the closure of engineering firm Compair earlier this year.

Kent-based engineering company Quaife is creating 12 jobs, all with former Compair staff.

The firm makes parts for high performance cars and is investing �1m in the site, which now belongs to the government's regeneration agency, English Partnerships.

Another company, OEM Fabrications, will also use the factory premises and will employ a further 20 people.

Paul Doble, manager of Quaife's Camborne operation, said it was the experience in the area that attracted them to the site.

He said: "We are very well known in the motor industry and there is a vast wealth of skills in the area that can be utilised.

"We don't have enough space in Kent any more.

"We shall have to retool the Camborne site, but once it is up and running we can look at increasing the workforce even further."

Business leaders in the hope that the new factories will draw other industries to the area.