Bulldozers have torn down the former Middleton Paper Company of the historic Eagle Works site overlooking Somerford Place in Willenhall town centre and scaffolding work is being carried out.
Originally home of Vaughan Brothers (Drop forgings) Limited the land is now getting a new lease of life as a residential estate for 51 homes comprising 34 flats and 20 houses.
Each house will have rear gardens and residents in the flats will have access to a shared courtyard which will be screened by landscaping to provide privacy.
The site on the corner of Summer Street is being redeveloped by social homes landlord Green Square Accord and the Fitzpatrick Group.
A GreenSquareAccord spokesman said: “ The development of the former Eagle Works factory is forecast to cost £8m and will provide 51 new homes all of which will be available for an affordable rent.
"We anticipate the first residents will move in later this year.”
All of the new homes will be built using a low carbon timber panel system – which will reduce construction time on site.
Vaughan Brothers which manufactured the Eagle brand spanner as well as gearboxes and jacks, parts for railway companies, aircraft manufacturers, fittings for ships and agricultural machinery was founded in 1874 and by the 1960s the company employed more than 300 workers.
It closed due to the 1980s recession and was briefly taken over by the Shakespeare company. Eagle Works was then acquired by the paper merchants Middletons Group which subsequently moved home after attracting complaints about paper litter by nearby residents.
It also suffered a series of fires including a £200,000 wrecking spree by arsonists 25 years ago that destroyed 500 tons of paper in tightly packed reels and caused extensive damage to the storage area.