Plans for the factory were first developed six years ago but put on hold as the general economic situation deteriorated. However, operations director Peter Wade said the decision was taken earlier this year to go ahead with a curtailed scheme.
"Market conditions at the time were such that we felt we had to postpone," he said. "Although things are not exactly flying and there is still talk of doom and gloom, we are seeing a definite improvement and we are about 10% ahead of last year.
"We are planning for the future. We have to be ready for when the good times do come again; you can’t build something like this overnight."
At 20,000ft2 the new factory is about half the size of the original plan. This will be in addition to the existing 40,000ft2 at the site and the smaller 2,000ft2 factory which opened in Burton-upon-Trent last year.
Mr Wade said the new space would allow the company to increase the efficiency of its production layout and create space for future growth.
"Depending on the work mix, our turnover capability will expand from £13m to £20m with the extra capacity. At the moment we have one factory where we make floor and wall cassettes, and now we will separate that.
"There will be a few more jobs initially and we will transfer some people over, but where we now have 50-60 in the factory, there will be room for another 20-30," Mr Wade said.
The new factory should be completed in September.
