 The 180-strong workforce was sent home after the announcement |
Nearly 200 workers at one of Cornwall's most historic firms are to lose their jobs.
Management at engineering company CompAir UK Camborne say the firm will close within months.
The workforce was informed of the decision at a meeting on Friday morning, before being sent home and told not to report back to work until Tuesday.
The firm, which makes compressed air equipment, has refused to comment or give reasons for the closure.
In its heyday, the company - formerly known as CompAir Holman - was the west Cornwall area's largest employer and was at the centre of Camborne's economic boom.
I don't know what Camborne is going to do. It is going to hit the town very hard  Barbara Godolphin, former Camborne Town Council chairman |
But it has faced several problems over the past few years and has been forced to lay staff off during that time.
Four years ago, the company was given several million pounds by the government to help with restructuring.
Unions Amicus and the AEEU said the announcement of the closure had come as a "bolt out of the blue".
Amicus shop steward Terry Solomon said: "We knew nothing about this until the announcement.
"It's just part of the secretive things that have been happening here.
"It's a complete shock to us and we are totally devastated."
Very upset
Former Camborne Town Council chairman Barbara Godolphin said shewas very upset by news of the closure.
She used to work at the Holmans factory and has a son, son-in-law and step-son still working for CompAir in Camborne.
Choking back the tears, she said: "I worked there for eight years and I don't know what Camborne is going to do.
"It's the only industrial place we have still got in Camborne. It's going to hit the town very hard."
Selective assistance
Candy Atherton, MP for Falmouth and Camborne, said the company had been struggling when it was given financial aid by the government.
"It is very, very sad news," she said.
"Four years ago the company came to me and said if the government did not give them in the region of �8m to �10m, they would close that very day.
"We worked hard and several million pounds was allocated in selective assistance to help the company restructure."