A MULTI-million dollar redevelopment of the old Rosedale tannery will open next month, as the new home of Bambach Wires and Cables.
The $9 million redevelopment, which will transform the old tannery into a cable manufacturing facility, is expected to create 50 local jobs.
The factory will manufacture cables and wiring for use in infrastructure and defence-related projects.
Gippsland MHR Darren Chester secured a federal government grant of $2.9 million to support the growth of Bambach Wires and Cables through the Regional Jobs and Investment Package.
The company committed the remainder of the money needed to redevelop the tannery site.
Mr Chester said the Rosedale site would reduce manufacturing costs and allow Bambach to target new international markets.
"Bambach has already employed 11 local staff and is in the process of recruiting an additional 40 employees, which will deliver long-term benefits for our region," he said.
Bambach Wires and Cables managing director Alfred Chown said the grant had given the business capacity to undertake the large expansion, putting it on an internationally competitive footing.
"The new facility will produce more than 200 tonnes of finished cable products per month and be able to make cables three to four times faster and five times larger," Mr Chown said.
"It will also reduce lead times from 10 weeks to four weeks.
"We will be able to manufacture a full range of low voltage cable products and provide locally-made products in a timely and competitive manner."
The new facility is due to be operational next month, with full production reached by the end of the year.
The federal government's Regional Jobs and Investment Package has provided almost $20 million to Gippsland businesses to create more jobs.