Work began yesterday on the creation of a film studio complex that should help one of the poorest parts of Britain to capitalise on its already strong reputation as a film-making location.

Backers of the £5.76m project in St Agnes, Cornwall, claim the project will be the first purpose-built film studio to be constructed in the UK since the 1920s.

Although Cornwall has become an increasingly popular location with film-makers - including the latest James Bond epic, Die Another Day - post-production activities have had to be carried out elsewhere with the result that much of the economic benefit of the film-making process fails to find its way into the local economy.

The studios will include two covered sound stages for indoor work so that productions can continue in inclement weather.

The project, which has received £2m backing from the European Regional Development Fund as part of Cornwall's £300m Objective One economic regeneration programme, is the brainchild of London-based film producer Alex Swan.

Mr Swan, a co-producer on the 1999 film Relative Values, said research had shown a clear need for quality studio facilities in the south-west.

"What we are offering is a home from home for the production companies, but at considerably less cost."

The studios, due to be running by September next year, are expected to support up to 200 jobs and generate more than £10m a year for the local economy. A number of companies in the area have expressed interest in working there to create a "cluster of expertise" spanning catering, lighting and cameras.

Bill Bawden, who heads Cornwall's Objective One programme, said the project could position the region as a centre for film-making excellence. "This is all part and parcel of growing the arts sector in Cornwall."