The Vulcan Works scheme is creating a total of 59 lettable units - specifically aimed at start-ups and growing businesses - in the area between Guildhall Road, Angel Street, Fetter Street and St John's Street in Northampton's Cultural Quarter.
Rugby-based Stepnell is undertaking the restoration of the historic and Grade II Listed former ironworks factory, once at the forefront of Northampton's internationally-renowned shoe industry.
It involves the refurbishment of the old iron stone work factories along Guildhall Road, the creating of a new three-storey building on the corner of St John's Street and Fetter Street as well as constructing a new block on Angel Street to create the new office, studio and managed workshops.
Vulcan Works was built in 1875 for engineering company Mobbs & Co and was later turned into a leather warehouse. It is considered one of the best surviving engineering works for production of boot and shoe industry machinery.
Preliminary work already completed includes the demolition of the former Amalgamated Tyres building, asbestos removal and archaeological work.
Road closures have been introduced in Angel Street and there are parking restrictions in Guildhall Road.
South East Midlands Local Enterprise Partnership (SEMLEP) has facilitated a Local Growth Fund contribution of £6.3 million together with £3.06 million from the European Regional Development Fund. We are covering the remaining costs.
An operator is being sought to run the facility on behalf of the council. The project will be complete by autumn next year.
During its first ten years of operation, Vulcan Works is expected to support up to 100 businesses, creating around 300 jobs.
Councillor Tim Hadland, cabinet member for regeneration and enterprise, said: "This scheme has been some time in the making and we are delighted that everything is now finally underway. Northampton is one of the most entrepreneurial places in the country and Vulcan Works will provide space for new businesses to establish and thrive".