WORK has started on a multi-million-pound factory that will enable one of Hampshire’s best known firms to increase its production.

New Forest Ice Cream, which supplies 2,000 outlets across the UK, is leaving its existing home in the centre of Lymington and moving to a purpose-built complex on the edge of the town.

The company, which already employs 39 people, says the £2.4 million building at Ampress Business Park will create up to 11 jobs.

Sales director Christina Veal said: “We’ve outgrown our current site and are very excited to be starting this new project.

“The new building has been planned to cater for our needs exactly and will give us the chance to widen our range still further.”

Citing the company’s success to date she added: “This expansion is a testament to the hard work and commitment of our staff, retail outlets across the south and wholesalers across the country.”

The new building, which will be equipped with four production lines, is due to be completed by the end of the year.

Planning permission for the scheme was awarded last summer, ending a five-year search a new home.

A previous proposal to open a factory on greenbelt land beside Gorldeton Industrial Park, Pennington, was rejected by New Forest District Council in 2008.

Managers lodged an appeal but government-appointed planning inspector Edward Grace supported the council’s decision, sparking fears that the company would be forced to leave the area.

However, an application to develop a vacant piece of land near the Lymington New Forest Hospital was approved 15 months later.

Members of the council’s planning and development control committee were told that the scheme was “crucial” to the local economy.

Cllr Maureen Holding said: “New Forest Ice Cream is a massive employer.

“If they left the area an awful lot of jobs would go with them.”

Cllr Anna Rostand added: “We’ve got to support our local companies, especially in the current economic climate.”