Construction work began today for a multimillion-pound factory in Clifton Moor, and the relocation of one of York's longest-established engineering businesses.

Excavation and groundworks have started on the new six-acre site of Downing and Mills Engineering Services, formerly Bootham Engineers, in preparation for the move from Melrose Works, in Hull Road, York.

In an innovative "land swap" scheme, backed last year by City of York planners, Severfield-Reeve Projects, Thirsk, will provide the complete operational 78,000 sq ft factory including relocating and installing all existing machinery, presses and overhead cranes; right down to the office equipment.

The freed-up Dowding and Mills' prime Melrose Works site taken over by Severfield-Reeve is being sold to Wainhomes (Yorkshire) Ltd for residential re-development.

Dowding and Mills, which was established in Bootham Row, York in 1932, is scheduled to move into the new premises early next year.

The engineering firm has been based at its existing 50,000 sq. ft factory premises since 1975.

The company carries out specialist engineering repairs and re-engineering of mechanical parts for the process and heavy industries throughout Europe and has customers including Nestl and British Sugar.

Updated: 08:53 Tuesday, June 26, 2001