Ground works have started on the regeneration of the former Harrison Drape curtain track factory in Digbeth.
Colmore Tang Construction has commenced the next phase of work on the £30 million residential development, which has been rebranded Fabrick Square, following five months of demolition work on the site in Bradford Street.
The Birmingham-based construction group is leading the project on behalf its sister company, development group Seven Capital.
The final project will contain 313 studios and one- and two-bedrooms apartments and will retain its original 19th-century façade.
Three new buildings are also being constructed as part of the project.
Andy Robinson, managing director of Colmore Tang Construction, said: "This project forms a huge part of the regeneration of Digbeth and it is fantastic to be able to get the spades in the ground and begin working on the site.
"The factory holds a huge amount of history and significance in the area and we will be preserving as many of its original features as we can, including the building's iconic façade."
Colmore Tang Construction has created 200 jobs and employed over 30 sub-contractors to complete the development, with work on the site expected to be complete by November 2017.