A new company is to spend �154m on projects in Cornwall to help regenerate one of the county's most depressed areas.

The new government-backed urban regeneration firm plans to bring 4,000 jobs and a 15% increase in wages for the Camborne, Redruth and Pool areas.

It will help promote local businesses and encourage other companies to invest in the area.

The South West Regional Development Agency said the company would concentrate on the area's needs more effectively.

In the end [it] means long-term sustainable deep-rooted regeneration

Regeneration minister Tony McNulty

Stephen Bohane of the agency, which had been in charge of regeneration, said: "There have been a lot of good projects in this area, but what's been lacking is the co-ordination and the strategy.

"After a massive public consultation, we've got the strategy, called an urban framework plan, in place.

"Now what we need is this body to really drive it forward, free of any other consideration and distractions."

It will be given the task of pushing forward schemes which, it is hoped, will breathe fresh life into Cornwall's largest urban area.

It has been blighted over the past few years by a decline in traditional industries, such as mining, and poor wages.

The company is one of 11 such regeneration firms in the UK.

A former derelict site has been turned into a market

The �154m will come in part from European grants, such as Objective One funding. However, the bulk will come from the private sector.

The government's regeneration minister, Tony McNulty, said: "An urban regeneration company is an extremely powerful tool that brings all the key players in an area together.

"It tells them to work out over a 10 or 15 year period a real strategy and vision for their areas that, in the end, means long-term, sustainable, deep-rooted regeneration."

Several projects out of a list of 72 are already under way.

New factory units are being built on the outskirts of Redruth and a former derelict site in the centre of the town has been turned into shops, a library and market area.