The move comes after Danish firm Danfoss received planning approval for the facility, at Shawfair Business Park, this summer. Scores of jobs are expected to be created by the firm.
The new building, which will be carbon neutral in operation, will be the global centre of research and development (R&D) and manufacturing for two key technologies on the path to net zero.
It will be home to Danfoss Editron, which develops electric and hybrid powertrain systems for heavy-duty vehicles, and to Digital Displacement – a technology conceived at the University of Edinburgh which will slash energy consumption in hydraulic machines.
The flagship centre in Midlothian is due to complete next year. It is being developed by Buccleuch Property.
Brian Kennedy, director of operations, from Danfoss Scotland, said: “This building will be Danfoss’s first carbon neutral manufacturing facility and demonstrates the company’s commitment to become CO2 neutral in all global operations by 2030, at the latest.
“Danfoss believes that energy efficiency, electrification and increasing integration between energy use and supply are the key steps to a sustainable future. With this building and these technologies, we believe we are contributing to this goal.
“Scotland is the natural home for this facility. Digital Displacement is a Scottish invention and brings with it a skilled and growing workforce which we aim to increase further in the years ahead.”
The ongoing development and commercialisation of the two technologies is being supported by the UK’s Advanced Propulsion Centre and Innovate UK.