Hundreds of jobs are coming to Chipping Norton as the fallout from the closure of a key employer is finally put to rest.

About 100 posts are being created by medical device company Owen Mumford, after it doubled the size of its manufacturing site.

And many more are set to come to the town after a deal was signed to develop part of the former Parker Knoll furniture factory, which closed in 2003 with the loss of about 140 jobs.

Witney MP and Conservative Party leader David Cameron will perform the official opening ceremony at Owen Mumford on Friday.

Already one of the town's largest employers, its workforce will swell to 280 within the next 18 months.

General manager Martyn Young said: "This new facility demonstrates Owen Mumford's commitment to Chipping Norton and the surrounding area."

Meanwhile, the site in London Road will see the construction of what developers are calling "the principal business park in north-west Oxfordshire".

The five-acre plot has been bought by Starleen Investments, part of the group which owns the Blenheim Office Park in Long Hanborough.

David Williams, of agents Meeson Williams, said there had been a wave of interest in the scheme and discussions had already taken place with local businesses wanting to move to the site.

Councillors and civic leaders are delighted that the project will finally close the book on the closure of Parker Knoll, which dealt a hammer blow to the town's economy.

Verena Hunt, West Oxfordshire District Council's cabinet member for economic development, said: "This is a major step forward in providing opportunities for future employment growth in Chipping Norton and helping to secure its position as a vibrant working town."

Simon Duffy, chairman of the Town Partnership and headteacher of Chipping Norton School, added: "We're delighted the land is now in the hands of a commercial developer and look forward to working closely with it on projects to stimulate the town's economy. This is great news for Chipping Norton."

The business park is the final piece in the jigsaw of the redevelopment of the 13-acre Parker Knoll site which was bought by housing developer George Wimpey for £13m in July 2004.

The firm is building 133 new homes on what is known as Blissfield Gardens, 40 per cent of which are affordable housing.