The CompAir factory is due to close in September

Economic leaders in Cornwall say the impact of the closure of a major engineering company will not be as bad as envisaged.

CompAir UK in Camborne announced on Friday that they will close their factory in September, making the 184-strong workforce redundant.

The firm, which makes compressed air equipment, has refused to comment or give reasons for the closure.

But Kerrier District Council economic development officer Roger Hook said the job market in the area was better than it was five years ago.

That was when South Crofty tin mine shut down, with the loss of lots of jobs.

It's a complete shock to us and we are totally devastated Terry Solomon, Amicus shop steward

Mr Hook said: "In the last four or five years, unemployment in the area has dropped by more than 2,000 people, so that's a good sign.

"The problem is going to be finding the right quality of jobs.

"But hopefully these people will be absorbed into other industries in the area."

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.

But it has faced several problems over the past few years and has been forced to lay staff off during that time.

Government help

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."