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Caerphilly-based housing association United Welsh is hoping to open a new timber frame factory in the Autumn.

The factory, which is currently being developed at Pontygwindy Industrial Estate in Caerphilly town, will be used to build timber frame structures for houses.

It is hoped the factory will be help towards the construction of 250 low-carbon homes each year.

The factory is being developed by Celtic Offsite – a social enterprise run by United Welsh.

Up to 28 new jobs could be created when the factory opens.

More than £2m has been invested into the scheme by the Welsh Government through its Innovative Housing Programme.

Richard Mann, Deputy Chief Executive of United Welsh, said the factory will “create community benefits at every stage of production”.

He said: “It will support the United Welsh Group, local authorities and other partners to realise our shared ambitions of achieving net zero carbon through the provision of new energy efficient homes, while supporting Welsh business growth and tackling fuel poverty.”

He added: “Investment is planned for green construction training opportunities for local people year on year.

“All profits from the enterprise will be reinvested into our social purpose of providing more affordable homes and community services; including our decarbonisation programme to become carbon neutral by 2035.”

Julie James, the Welsh Government’s Minister for Climate Change, described the project as “very exciting”.

She said: “We have already started work on implementing our manifesto commitment to develop a timber industrial strategy and create a stronger wood economy for Wales.

“Eighty per cent of the timber used in the UK is imported, and only 4% of the 1.5 million tonnes of harvested timber is processed to be used as construction-grade timber in Wales.

“There’s a real opportunity for timber processors and manufacturers in Wales to contribute to this wood economy, creating new jobs in rural Wales as well as building an innovative supply chain for high value added, longer life uses.”

Councillor Eluned Stenner, Caerphilly County Borough Council’s Cabinet Member for Enterprise, said: “We’ve had a strong partnership with United Welsh for many years and are extremely excited about this news. 

It’s aims cut across a number of our key priorities as a council, including lowering carbon emissions, helping us further develop a ‘greener Caerphilly’, stimulating our local economy, reducing energy costs and helping to meet the demand for housing in the county borough.”

Cllr Shayne Cook, who represents the Morgan Jones ward where the industrial estate is located, said: “‘Previously this part of the industrial estate has fallen into disrepair and become a beacon for anti-social behaviour, so to see the site rejuvenated and creating a number of jobs, as well as helping to cut carbon emissions, is very encouraging.”