BUILDING work on Ercol Furniture's new multi-million pound factory at Princes Risborough is due to start next month following the signing of an agreement with a property developer to take over its present High Wycombe site for housing.

The agreement, for an undisclosed sum, by Ercol Holdings, owners of Ercol Furniture, with Bride Hall Developments of London to purchase the current ten-acre site in Spring Gardens was signed last Thursday.

The timing of the sale to Bride Hall will be linked to Ercol leaving its current factory.

The final move to Princes Risborough, after 80 years in High Wycombe, is expected to be in the spring of 2002. Much of the cost of the new factory will be met by proceeds from the sale.

Ercol completed the purchase of the 23-acre Princes Estate in Princes Risborough from The Hampton Trust in November 1999.

Edward Tadros, chairman of Ercol Holdings, said: "Ercol's enduring values have always set us apart. Now we can capitalise on these with our new factory ensuring we build on our inspiration and attention to detail with the latest technological enhancements."

He said he was confident that most of the 400 staff, many of whom had been with the company for many years, will transfer to the new factory.

He also thanked Wycombe District Council for its co-operation.

Ercol plans a further 150,000 sq ft of office and factory space to be available for letting at its Princes Risborough site in addition to the new 160,000 sq ft factory, being designed by London architects Horden Cherry Lee.

It also aims to build five new warehousing/office units, totalling 48,000 sq ft at its company, George Worley, on the Cressex Business Park in High Wycombe.

Ercol, founded by Lucian Ercolani in 1920, remains a family-run concern with a present turnover of more than £20 million.

Mr Tadros said Ercol had had a better than expected start to the year and its "open house" fortnight, which began on Sunday, had definitely been busier than last year.