The CompAir factory is due to close in September

An investment fund in Cornwall says strong interest is already being shown in buying out a troubled engineering company.

CompAir UK Camborne announced on Friday that it was closing in September, with the loss of 180 jobs.

The company, which makes compressed air equipment, says it cannot compete in the international business market.

But Finance Cornwall chief executive Robin Teverson said the company might still have a bright future.

Viable future

"Cornish tenacity is fantastic and there is a track record down here of turning around companies like this," he said.

"If we can show there is a viable financial future for the business, companies like mine will put some shares money in or maybe some loans.

"If we can find a group of people who can make it work, that group will come in and we can work really hard to try and make the company successful."

Economic leaders in Cornwall have already stated the impact of the closure of CompAir might not be as bad as first envisaged.

Quality jobs

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

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

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."