Demolition has begun at the site of the old Rosebank Sawmill outside Balclutha.
The 8ha site belonging to the Clutha District Council has several buildings that will be destroyed in coming weeks to make way for a new industrial site.
The sawmill was closed in 2014 after Southern Cross Forest Products was placed into receivership.
Council chief executive Steve Hill said the council decided to purchase the land after a lack of space for industrial growth in the district was identified.
Plans to demolish the buildings began last year and workers finally started to take them down two weeks ago.
Once buildings were demolished, resource consents would need to be granted before further on-site work could occur, such as landscaping.
The site will be used as an industrial park for new or existing businesses, close to Balclutha's CBD.
Mr Hill said the development would promote industrial growth in the district.
"It is in keeping with the council's direction to take a leadership role in driving our local economy and encouraging business investment.''
Some of the iron cladding left over from the site was to be sold, as well as rimu timber from the deconstruction.
Demolition was expected to be completed by mid-February.
- Samuel White
