PART of Bury's industrial heritage is disappearing to make way for a new era of business prosperity.

Demolition work began this week to knock down a section of Peel Mills, located in Castlecroft, Bury.

Built at the turn of the century and originally occupied by John Bright, the building served as a major cotton mill for many years.

Later, however, when the cotton trade went into decline, the massive 260,000 sq ft building was split into individual units for small businesses.

Peel Mills is now owned by Manchester-based Saville Gordon Estates plc, one of the largest landlords of industrial premises in the country.

The company is involved in the second phase of a £1 million regeneration of the site which will ultimately create up to 100 new jobs. First phase of the work involved 12 new industrial units, between 800 sq ft and up to 6,000 sq ft, which have been built within the grounds. Most of these have now attracted occupiers.

The second phase of the building programme will involve the construction of a 40,000 sq ft warehouse building.

Mr Nick Clive of Saville Gordon, which acquired the building four years ago, said: "The demolition will affect around 60,000 sq ft of Peel Mills."

Derelict one and two storey sections of the mill will be flattened during the operations.

Mr Clive added: "This is all part of the ongoing phase of redevelopment for the whole site.

"The mill at the front was in such a state that it was uneconomical to repair it."

He is hopeful that the remaining sections of the mill, which are currently occupied, will flourish in the future and attract further businesses.

"While occupiers are in there, we will still continue with the building," stressed Mr Clive.

"At the moment, we want to clear out the deadwood."