A FORMER scrap yard in Oldbury is set to be transformed into a huge distribution centre - with hopes the scheme will create more than 200 new jobs.

The warehouse will be built on a vast, six-acre site off Seven Stars Lane, just off junction 2 of the M5.

It is hoped a leading firm will be attracted to the huge warehouse called Xpanse 120, providing hundreds of jobs and an economic boost for the area.

The warehouse is being built by Opus Land and Palmer Capital - on the site next to the Birmingham Canal which has been abandoned for years - partly thanks to funding from the West Midlands Combined Authority (WMCA).

It is hoped the 121,175sq ft unit, which will also have office space, 125 car parking spaces, lorry parking and a secure yard, will be completed by Spring 2020.

An artist's impression shows how the land will be transformed by the huge new building.

The scheme follows funding from the WMCA’s Collective Investment Fund, which is part of a £750 million war chest to support new housing and commercial developments that stimulate jobs, opportunity and growth across the region.

Much of the funding is being allocated towards the development of former industrial sites to support the WMCA’s ‘brownfield first’ approach - which aims to relieving pressure on the green belt.

The WMCA also provided funding earlier this year for another Opus Land scheme, in Cannock.

Mayor of the West Midlands, Andy Street said: “This is yet another example of how, by working collaboratively with partners in the public and private sector, we are able to unlock unwanted brownfield land, in this case a former scrap yard.

"This site will now no longer be a blight on the area, instead it will become a large industrial unit capable of supporting many jobs and businesses here in Sandwell.

“As demonstrated at Kingswood Lakeside in Cannock, and Prospero Ansty in Coventry, Opus Land are capitalising on these opportunities bringing successful and award-winning schemes forward.

"We are working hard across the West Midlands to clean up derelict brownfield sites like this to prepare them for development, creating the jobs and houses our region needs.”

Tom Edgar, development director of Opus Land, said: “We are delighted to be involved in bringing forward this fantastic site in Oldbury for much-needed quality industrial accommodation in the heart of the Black Country.

"We will start construction speculatively, with completion due in Spring 2020, knowing that units of this size and location are in very high demand.

"We will offer a rare, flexible approach to occupiers seeking either freehold or leasehold options in new-build Grade A facilities.”