A £1.5 MILLION investment in a Bodmin pasty company will create 50 new jobs and safeguard 183 more.
Proper Cornish has been awarded the money through the Cornwall and Isles Of Scilly Local Enterprise Partnership's (LEP) Business Catalyst Fund.
The funding will enable a £3.75 million project to convert an empty 48,000sq ft unit on the Walker Lines Industrial Estate to accommodate a modern bakery and head office all under one roof.
The news is an employment boost for the town after the recent announcement that more than 60 jobs will be going at MPG Books.
Bodmin mayor Ken Stubbs said new job opportunities in the town were always welcome. "Proper Cornish is a very go-ahead company and new jobs are excellent news for Bodmin. It's nice to have such positive employment news after the losses at MPG Books," he said.
Chris Pomfret, chairman of the enterprise partnership, said the investment was an example of the real difference the fund can make to a company and the wider community.
"It has enabled a project that will safeguard the existing business but will also create new jobs and promote growth, which is a key priority for the economy of Cornwall in 2013," he said.
The conversion will enable Proper Cornish to combine the company's six current locations and will create 50 new jobs over the next two years.
Paul Saunders, the group financial director for Proper Cornish, said: "We are delighted that the LEP has recognised the opportunity this project offers in terms of sustainable employment and business growth.
"Funds such as these are vital in the current economic climate and we are excited to be able to move the business forward in such a positive way."
The £5 million Business Catalyst Fund is delivered by Cornwall Development Company on behalf of the LEP and Cornwall Council.
It forms part of the £17 million Business Boost investment programme.
Padstow and St Merryn Cornwall councillor Stephen Rushworth, the local authority's portfolio holder for economy and regeneration, welcomed the news.
"The council is committed to working with partners to support the local business community in achieving growth and creating new jobs for the people of Cornwall," he said.