Work has started on a new development of 138 homes at a former wallpaper factory site in Holmes Chapel.

Anwyl Homes is redeveloping the 10-acre site on Macclesfield Road and will retain the name Victoria Mills for its new development. Demolition of the old factory and mill buildings is underway.

Former occupants of the site Fine Décor have made a multimillion pound move into new premises in Congleton. The site has been used for wallpaper manufacturing since 1911 when the Holmes Chapel Wall Paper Company was established. Since then, and despite changing ownership, it has continued to produce wallcoverings. Fine Décor occupied the facility most recently, where it employed over 200 people.

Phil Dolan, managing director for Anwyl Homes Cheshire and North Wales, said: “Victoria Mills will provide a great opportunity for homebuyers at every stage of life to purchase in this sought after village location, within walking distance of independent shops, schools and the train station, and with a footpath link being opened up to Eastgate Road. Central to the development will be a play area and green open space for residents and the wider community to enjoy.

“Our acquisition of Victoria Mills has enabled Fine Décor’s move to a modernised facility and helped to ensure that these vital manufacturing jobs have remained in Cheshire East. It’s also ensured that the old factory and mill buildings can make way for much needed high quality new homes in Holmes Chapel, including a selection of two bedroom bungalows, two, three and four-bedroom houses, and seven affordable properties.

“It’s full steam ahead on site now, with demolition of the factory and mill buildings underway and the first foundations laid for our new homes.”

Homes will go on sale towards the end of the year when show homes will also open. The development is expected to take three to four year to complete.