Work has started in Cornwall on two new industrial units aimed at creating 170 jobs with the help of the highest level of European Union regional funding.

Nearly £2.3m has been allocated to the project from the EU's Objective One funds.

The units include premises for the printing firm, Stralfors, which is relocating to the Cardrew industrial estate in Redruth.

A total of £6.5m is being invested in the development which is the biggest so far in Cornwall to qualify under the Objective One rules.

When someone actually turned the key in the door, instantly, you'd to write off £3m.

Mike Murphy, Stralfors

Falmouth-based Stralfors is best known for making lottery tickets.

It needed to relocate, but doing so within Cornwall was the toughest option financially.

This is because industrial premises in the county suffer from notoriously low resale values.

Mike Murphy from Stralfors, said: "What we were looking at in terms of the cost of the building and fitting it out would be approaching somewhere in the region of £6m.

"When someone actually turned the key in the door, you would be writing that value down, the market value, to about £3m. Instantly, you'd to write off £3m.

"That's basically where the Objective One funding came, helping us to bridge that gap."

The project is the biggest private sector development in the county to be funded in this way.