The Government has agreed to provide £12 million in funding to help launch a high-tech food manufacturing campus in Derby, as part of a £300 million recovery project for the city.

It will also provide an additional £6.85m to establish a manufacturing research centre in the city, generating 70 new roles and helping local companies to grow their operations in low-carbon and other advanced technologies.

Both initiatives form part of a recovery strategy to help reboot Derby’s economy after the coronavirus crisis. It is built on three key pillars – maintaining confidence, diversification and decarbonisation.

The campus is part of a new £300m high-tech food manufacturing and distribution campus in the city, to be developed and operated by SmartParc on 140 acres of the former Celanese site near Spondon.

The campus would include a shared energy plant, designed to reduce energy consumption by 30%, as well as harnessing the latest technology to improve production and efficiency, lowering costs by 20%.

A central distribution facility will allow manufacturers to consolidate both raw materials and finished goods, with the aim of improving efficiency and lowering food miles.

As well as creating up to 4,500 direct jobs, the project will also try to help generate further employment in the supply chain and throughout the local region.

“We are delighted to receive Government backing for our ambition and look forward to working with Derby City Council, local universities, businesses and communities to share our vision and deliver up to 4,500 new jobs in the area over the coming years.”

Work will start in the first quarter of 2021 and a planned opening, with initial occupancy, set to take place later that year. Full project realisation is expected by 2024.

SmartParc chief executive, Jackie Wild, said: “SmartParc is part of a £300m investment to put Derby city and the UK at the heart of the future of sustainable food manufacturing globally.

“The planned SmartParc campus will combine world-class food production facilities with shared utilities, amenities and services to provide a highly sustainable, low-cost production base for food manufacturers and new ways to reach end customers while reducing food miles and food waste.

“It will also act as a community hub, with a new food innovation centre and skills facility and planned partnerships with local charities, schools and universities to reconnect people with the food they eat.

“We are delighted to receive Government backing for our ambition and look forward to working with Derby City Council, local universities, businesses and communities to share our vision and deliver up to 4,500 new jobs in the area over the coming years.”