WORK is set to begin next month on a multi-million pound development at Rolls-Royce's Bankfield site in Barnoldswick.

A new factory will replace the 100-year-old mill currently used to produce components for the company's Trent family of engines.

The old site will be sold off to the North West Development Agency to form a new business park.

The aerospace giant confirmed on Wednesday the latest phase in its programme to modernise factories and drive down costs.

Work on the new single-storey factory will start on September 27. It will be built on the northern side of the site.

The town's Bankfield site is just one of four Rolls-Royce factories in the UK to benefit from a £100 million investment.

Project manager Stuart Walton said the scheme would cost around £7 million and would provide an improved working environment for employees.

Mr Walton said it would be more spacious, have natural light, better air quality and better facilities - including conference facilities and meeting rooms.

The company hopes to occupy the new factory by next summer, but the move could continue into 2006. Some office workers, including those at the company's headquarters, will be moved from Bankfield to Ghyll Brow - the company's other Barnoldswick site.

Although the development is not expected to generate more jobs in the short term, the investment will safeguard around 750 existing jobs.