The land, owned by Port Otago subsidiary Chalmers Properties and used as a car park for many years, will be leased to Atmos long term and will have a single-storey pre-cast building constructed on it, with a floor space of 924sq m.
Nine-year-old Atmos Engineering, formed in 2001 after a buy-out of Naylor Love's building services, primarily supplies the mechanical services sector.
Staff numbers would remain at 35, plus casuals at busier times, Atmos manager Stephen Gregory said.
The lease had expired on the Halsey St premises and it was decided to invest in a purpose-built building to best serve the company, he said.
Naylor Love project manager Paddy Bleach said up to 12 carpenters and a further 12 staff would be on site during the construction period.
