WORK has begun on a technology centre on the former Michelin site in Burnley following a £2million boost from the North West Development Agency.

The building, which will accommodate up to 20 small and medium-sized enterprises specialising in technology and manufacturing, is expected to open in September.

The project will also help to increase the number of small businesses starting up in the area.

Creating up to 150 new jobs for local people, the scheme will help around 295 businesses to improve their skills levels and provide valuable advice to a further 290 organisations. Funding also came from the European Regional Development Fund.

It will be managed by a joint venture company owned by Burnley Borough Council, Burnley College, Lancashire Developments Ltd and Northern Technologies Ltd.

Ian Whittaker, Lancashire area manager for the North West Development Agency (NWDA), which bought the site in April 2002 after the tyre factory was shut down by Michelin in October 2001 with the loss of 452 jobs, confirmed developers were on site.

He said: "We are on site and work is progressing well. Completion is expected later this year and we are looking forward to when the centre is up and running."

It is hoped that the new facility, which was given planning permission by Burnley Council in October, will kick-start the redevelopment of the whole site, which is expected to take several years and will cost the NWDA somewhere in the region of £15m. More detailed proposals are expected in the summer.