HydraForce Hydraulics has started work on its major new factory at the Advanced Manufacturing Hub in Aston.
The firm is creating a 120,000 sq ft manufacturing facility where around 500 staff will be based from next August.
It received a £1.8 million grant from the Regional Growth Fund towards the 6.7-acre site which it purchased from the Home and Communities Agency earlier this year.
Charles Spicer, associate director of industrial at Savills which acted on the deal, said: "It is fantastic to see a major global business such as HydraForce choose the hub for its European headquarters.
"We are anticipating high levels of interest in the remaining development sites there as Birmingham's industrial market continues to thrive."
HydraForce president John Brizzolara, who flew to the UK especially for the ground breaking ceremony, says: "We are delighted to witness this new stage of growth for our company in Europe.
"Over 30 per cent of our products are sold into the growing agricultural equipment sector and 80 per cent of HydraForce's UK output is exported."