Talks are underway between West Sufolk College and the Vitec Group over the purchase of the Vinten site in Western Way.
The college is looking to build a £7million Engineering and Technology centre and has received funding through the Government’s New Growth Deal via the New Anglia Local Enterprise Partnership.
It has lodged a change of use planning application with St Edmundsbury Borough Council to convert the current factory, which makes broadcast, film and photography equipment, into an educational facility.
A Vitec Group spokesman said: “The Vitec Group was approached by West Suffolk College to establish whether there was any interest in selling the site. Discussions are ongoing and no formal contracts have been signed. We will communicate any update when there is something substantive to say.”
There are currently 180 people working on the site and 12 months ago some assembley work moved to Costa Rica.
Stephen Jones, college vice principal finance and resources, said the college was in discussion witrh Vitec but no formal contracts had been signed.