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Work is progressing on a new $2 million administration building at Ravensdown's site on Ravensbourne Rd in Dunedin.
The new office, laboratory and amenities building, which has a floor space of 740sq m, is due for completion in September.
It will house 25 staff.
Naylor Love Construction is the main contractor, with local subcontractors completing the construction team.
The old building will be demolished, a Ravensdown spokesman said.