darley Dale mayor was given the honour of cutting the first sod at the site of a new factory and office complex.
Building work has begun at Old Road, in Darley Dale, to create a new two-storey industrial unit and 13 car parking spaces.
Cllr John Evans donned a hard hat and high visibility jacket to help launch the development, on Friday.
The work is being carried out by Belair Building, a building contractor based in Nottingham, for Slater Plastikard, which specialises in fine scale model railway kits and accessories.
The 20-week project will see the company’s factory relocated from Temple Road, in Matlock Bath.
David White, director and owner of Slater Plasikard, said the business had been on its current site for 41 years.
He added: “The business has been successful and we will be expanding the factory at the new site.
“As people have more and more leisure time they do seem to be getting more hobbies which has been good for our business.
“This is really a homecoming for me as I started the business in Darley Dale.”
The plans for the former SE Johnson site were passed by Derbyshire Dales District Council in 2009.
The site is set to be extensively landscaped to minimise the impact of the development on surrounding properties.
Mr White said the work would involved planting trees and shrubs.
He said: “We will have a new factory and we want to make it look nice in the beautiful surroundings.”
He added: “All the work force is looking forward to going in to the new premises.”
Heather Fern, general manager at Slater Plastikard, said: “We are going to expand and we will be setting a couple more people on.
“We will be keeping up the good work of the business and keeping our customers happy.
“We are all really looking forward to moving in to the new building. It is such a beautiful part of the countryside to be working in.”