Europe's oldest dry dock has been saved thanks to a new company stepping in to keep it running.

Penzance Dry Dock was the first of its kind in Europe when it opened in 1834 but in May its future was looking doubtful.

The facility had been leased by the Isles of Scilly Steamship Group, but two months ago it confirmed that it was pulling out.

When contacted, Penzance Dry Dock confirmed that it was due to close at the end of May but when asked for more details declined to give any information.

However, yesterday evening a statement was sent out by the Isles of Scilly Steamship Group to say that it had now completed the sale of the facility to Penzance-based engineering business Linked Solutions SW Limited, after more than six months of negotiations.

The company said: "It will continue to be business as usual at the Dry Dock as all current employees will remain employed. Further, Linked Solutions has also pledged to maintain the dry docking facility for leisure and commercial vessels.

"The dry dock, which is fully equipped for marine engineering and maintenance activities, has been leased and operated by Isles of Scilly Steamship Group since 2009. But in January this year, the Group announced its intention to concentrate on its core transport business and confirmed they would not renew the lease on Penzance Dry Dock.

"Linked Solutions SW Ltd, which provides marine engineering, design and fabrications as well as project management and consultancy services has purchased the entire shareholding of the operating company.

"The Steamship Group is providing financial support to enable the sale to proceed."

The news has had a resoundingly positive response from Cornwall’s engineering and business leaders.

Kim Conchie, chairman of Cornwall Chamber of Commerce, said: "I’m delighted to see Penzance Dry Dock coming back to life. Penzance is an important

element of Cornwall’s maritime infrastructure and the Dry Dock will help establish its forward looking ambitions and regain its place as a provider of suitable marine facilities.

"We wish the new business every success."

Cornwall councillor for Penzance East, Tim Dwelly, has also spoken about the sale.

Announcing the good news on Facebook under the heading 'Dry dock saved!', Mr Dwelly said: "I couldn't mention this during the election when the news of the Dry Dock closing was in the media. But now what I hoped would happen has been announced.

"The Dry Dock is being taken over by a Penzance-based engineering company and all the jobs are saved."

The Steamship Company said the sale had taken more than six months to complete, but it was "fully supportive of the transaction" and expected to continue to work with Linked Solutions for many years to come.

Stuart Reid, chief executive of the Isles of Scilly Steamship Group, said: “We are pleased the dry dock operation will be continued under new ownership.

"The Isles of Scilly Steamship Group is committed to focusing on our core operation of transporting passengers and freight by sea and air.”

The Packet has also contacted Linked Solutions for a statement.