WORK on a new £5m regeneration project which will create up to 500 jobs in Kidderminster is to start in the New Year.

Developers are to refurbish the old headquarters of Victoria Carpets in Green Street.

Work on the renovation is expected to begin within the next fortnight to provide 45,000 sq ft of office space at the historic building.

But the announcement has been tempered by news that a Stourport-on-Severn firm is to shed 95 jobs.

Plastics firm Textron Automotive Ltd took the decision on the back of declining sales and working pattern changes at its major customers.

"The first phase of redundancies will focus on managerial and technical positions," said a company spokesman.

"Further consultation will take place early in the New Year when it is expected that the positions concerning customer schedules and working arrangements have been confirmed.

"Every effort will be made to mitigate the effects of this reorganisation."

Kidderminster's Green Street Business Centre is expected to be up and running by next October.

It will contain its own car park, while Green Street's pavement is upgraded and trees are planted.

"We're delighted to be involved with this project, which will open up new business opportunities for a number of companies in and around Kidderminster and will bring new life back to an old part of the town," said Alex Brodie, of developers Morbaine Ltd.

The renovation will take in Elgar House, which was built in the 1920s, and Campion House, built in the 1850s. This was the original base of Victoria Carpets.

The development will join the KTC1 development and the Crossley Park retail site next to the town centre.