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St Modwen is set to start on site in its 拢1bn regeneration of the former Corus Llanwern steelworks near Newport after signing a section 106 agreement with the city council.

The developer is to convert the 600-acre disused steelworks site into a new 鈥渦rban community鈥�. Including a 1.5m sq ft business park as well as 4,000 homes, it will provide 6,000 new jobs.

St Modwen said it expected to announce a residential partner 鈥渧ery shortly鈥� for phase one of the housing element of the development, which is to be named Glan Llyn.

Glan Llyn will include a new district centre with a variety of retail and leisure facilities as well as schools, a police station and a doctor鈥檚 surgery.

The developer has already been carrying out remediation works over the past four years but the section 106 agreement enables construction work to begin on the homes and the business park.

Rob Skelston, development director for St Modwen in south Wales, said: 鈥淪igning the agreement with Newport City Council signals an important milestone for the development of the site, meaning we can now start physical building work on the first residential phase of housing and also Celtic Business Park.鈥�

Newport city council鈥檚 head of service for planning, regeneration and strategic housing, Andy Evans, said: 鈥淭he city council and St Modwen have reached a significant stage in moving this strategic regeneration project forward鈥� This is a massive contribution to Newport鈥檚 future growth strategy.鈥�

Ieuan Wyn Jones, Welsh deputy first minister, said: 鈥淲hile the Corus mills at Llanwern are still a significant employer in the area and remain integral to its Welsh operations, the development of the heavy end of the steelworks which closed in 2001 is an important step in the regeneration of the area.

鈥淚t will see new housing, new businesses and employment opportunities. Importantly it will improve the local infrastructure and provide a lasting legacy for the community.鈥�